Spot market in economics and finance

Hello everyone! Welcome to today's lesson on spot market in economics and finance. The spot market is a crucial component of financial markets, where assets are bought and sold for immediate delivery. It is in contrast to the futures market, where contracts are traded for future delivery. The spot market, also known as the cash market or physical market, is where transactions occur 'on the spot', meaning the exchange of assets and payment happens immediately. This market plays a significant role in determining the current price of an asset, as it reflects the forces of supply and demand in real-time.