Word: Spot Price
Definition: The spot price is the current price at which a commodity (like gold, oil, or wheat) can be bought or sold for immediate delivery in the spot market. This means that if you want to buy or sell something right now, the spot price is what you would pay or receive.
Usage Instructions:
Use "spot price" when discussing financial markets, commodities, or investments.
It is often used in contexts like trading or investing, where timely prices are essential.
Example:
"The spot price of gold today is $1,800 per ounce."
"If you want to sell your oil now, you need to check the spot price to see how much you will get."
Advanced Usage:
Traders often monitor the spot price closely to make quick buying or selling decisions.
The spot price can fluctuate frequently based on supply and demand, geopolitical events, and market speculation.
Word Variants:
Spot Market: The market where commodities are bought and sold for immediate delivery.
Futures Price: This refers to the price agreed upon for delivery at a future date, as opposed to the current spot price.
Different Meanings:
In general, "spot" can mean a specific place or location, but in finance, it refers specifically to immediate transactions.
Synonyms:
Current price
Market price
Immediate price
Idioms and Phrasal Verbs:
Summary:
The term "spot price" is important in understanding how commodities are traded. It signifies the price for immediate transactions, and it changes frequently based on market conditions.