Spot Commodity

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DEFINITION of 'Spot Commodity'

A commodity traded on the spot market. That is, with the expectation of actual delivery, as opposed to a commodity future that is usually not delivered.

INVESTOPEDIA EXPLAINS 'Spot Commodity'

This is the opposite of a futures contract, which usually expires before any physical delivery.

RELATED TERMS
  1. Commodity

    1. A basic good used in commerce that is interchangeable with ...
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