How are you all? Today I will discuss with you what is the spot market ? I am young and have very little experience so please excuse any mistakes.

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What is the spot market?
Let's start with the definition of spot market. A spot market is a financial market where securities such as stocks, commodities and currencies are exchanged for immediate delivery. Deliverables are an asset in exchange for cash. In a spot market, a settlement usually occurs on T+2 business days. Hence, delivery of cash and goods must be done after two working days of the trade date. A spot market can operate through an exchange or over-the-counter (OTC). Spot markets can operate where infrastructure exists to facilitate transactions. The spot market is also called the cash or physical market because cash payments are processed immediately and there is an actual exchange of assets.

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Trading assets in the spot market:
Fixed income securities such as equities, bonds or treasury bills and currencies are financial products traded in the spot market. The product also dominates the spot market. Trade in energy, metals, food, livestock and other commodities is quite common. Apart from non-perishable products, you can also trade in non-perishable products like food grains.
What is the spot rate?
In the spot market, the settlement of shares, currencies and commodities takes place instantaneously. Spot rate is the rate fixed for quick settlement. This is often referred to as the spot price of an asset. The spot rate is the prevailing market price of an asset. The amount buyers are willing to pay and the amount sellers are willing to take for security together determine the spot rate. Demand and supply of an asset determine the spot price. But other factors, such as future prospects, can also affect the asset's spot rate.
Today's discussion ends here. I hope you find it interesting and able to understand. Share your thoughts on today's topic. Wishes and blessings to all. Everyone stay well stay healthy stay with Steemit.