Spot Market Law and Legal Definition

The Spot market is a public financial market, in which financial instruments are traded and delivered immediately. Contracts bought and sold on these markets are immediately effective. It can be an organized market or "over the counter"( OTC). Spot markets can operate wherever the infrastructure exists to conduct the transaction. The spot market for most instruments exists primarily on the Internet. Spot Market is also called Cash Market because prices are settled in cash on the spot at current market prices, as opposed to forward prices.