What is "spot market"

n. (context trading economics finance English) A market in which commodities are bought and sold for immediate delivery. Delivery usually takes place in the same or next business day.

n. a market in which a commodity is bought or sold for immediate delivery or delivery in the very near future

The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market, in which delivery is due at a later date. In a spot market, settlement normally happens in t+2 working days, i.e., delivery of cash and commodity must be done after two working days of the trade date. A spot market can be through an exchange or over-the-counter (OTC). Spot markets can operate wherever the infrastructure exists to conduct the transaction.