Spot Market

A spot market is a platform where financial instruments such as commodities, currencies, or securities are bought and sold for immediate exchange and payment. In these transactions, settlement and delivery occur shortly after the trade—typically within T+2 business days. Unlike futures or forward contracts, which involve delivery at a predetermined future date, the spot market reflects the asset’s current or prevailing price, known as the spot price.

Example: When an investor purchases gold in the spot market at ₹6,000 per gram, the transaction is settled within two working days, and the gold is delivered at the current market rate, without any future contractual obligation.