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. 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. Cash-And-Carry Trade

    A trading strategy in which an investor buys a long position ...
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