Spot market

A spot market (including cash market, Lokomarkt or effective market) is the economic place, meet at the supply and demand of spot or cash transactions. Trade objects on the spot market, currencies, securities or fungible items that are traded according to standardized contracts. Here, a mutual settlement period of no more than two trading days is common; Transactions beyond are attributed to futures market.

Mutual obligations

The distinction between cash and futures therefore takes place especially through the settlement period of the mutual promise. The securities traded on a spot market prices is called spot or cash price, while speaking in emissions trading by the clearing price of a certificate. The buyers on the spot market has those resulting from the spot rate equivalent to be paid within two trading days, while the seller must make available to the purchaser within this period the agreed commercial property as well. For each object a trade trade unit is set to be implemented on the spot market at least. When crude oil as standardized a barrel of light sweet crude oil or a barrel of Brent Crude Oil is traded.

Term origin

The term comes from the oil spot market trading, where he refers to the trading center for petroleum products and crude oils. He comes from the English word on-the -spot, which can be translated immediately and points to the short settlement period of two trading days. In Europe, the oil spot market in Rotterdam is decisive where reside many oil companies and refineries for the oil harbor. However, by international networking today is no longer the Rotterdam spot market talk.

Meanwhile, the term spot market / cash market is mainly used for trading with securities, foreign exchange, electricity, metals and natural gas.

Subdivision

At the respective admission requirements to the securities markets orienting, the cash market for securities to the Regulated Market and Open Market can be in exchange area (formerly Market) divide.