Spot Commodity


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.

BREAKING DOWN 'Spot Commodity'

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

  1. Spot Trade

    The purchase or sale of a foreign currency or commodity for immediate ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  3. Spot Delivery Month

    The nearest month when a futures contract matures. The spot delivery ...
  4. Spot Market

    1. A commodities or securities market in which goods are sold ...
  5. Spot Price

    The current price at which a particular security can be bought ...
  6. Implied Volatility - IV

    The estimated volatility of a security's price.
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  1. Can mutual funds invest in options and futures?

    Mutual funds invest in not only stocks and fixed-income securities but also options and futures. There exists a separate ... Read Full Answer >>
  2. Can mutual funds invest in commodities?

    Mutual funds can invest in commodities. In fact, mutual funds may provide a better way for investors to gain exposure to ... Read Full Answer >>
  3. How do futures contracts roll over?

    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
  4. Why do companies enter into futures contracts?

    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>
  5. What does a futures contract cost?

    The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may have ... Read Full Answer >>
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    The primary risks associated with trading derivatives are market, counterparty, liquidity and interconnection risks. Derivatives ... Read Full Answer >>

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