Spot commodity
Definition: [crh] A commodity that is traded with the expectation of actual delivery, as opposed to a cDefinition: ommodity future that is usually not delivered.
Spot Commodity
(1) The actual commodity as distinguished from a futures contract
Spot Month ...
Spot commodity
A commodity that is traded with the expectation of actual delivery, as opposed to a commodity future that is usually not delivered.
Spot Commodity (business term)
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Restoration (1999 Album by Doria Roberts)
Divas of Mali (1996 Album by Various Artists) ...
Arbitrageurs, because of the ease of switching from the spot commodity to futures, will keep these markets in line with prevailing interest rates.
Because of such non-randomness, many spot commodity prices cannot be modeled with a geometric Brownian motion, and the Black-Scholes (1973) or Merton (1973) models for options on stocks do not apply.
(2) The price of an option contract; also, in futures trading, the amount by which the futures price exceeds the price of the spot commodity.
In energy markets, this term refers to a situation where spot commodity prices are higher then future prices. In the oil market, this situation might reflect the supply and demand condition.
Depending on its use and trading purpose, a commodity may come in two types - cash commodity and spot commodity. A cash commodity is an actual commodity that is under a futures contract.
Most notably, spot commodity markets have underperformed inflation and cash over long periods of time: while the GSCI spot index earned an annual return of 4.8% since 1970, cash returned 5
By Keith Black, Satya Kumar ...
LONG THE BASIS
A person or firm that has bought the spot commodity and hedged
with a sale of futures is said to be long the basis.
LOT
Any definite quantity of a futures commodity of uniform grade;
the standard unit of trading.
CASH COMMODITY - The actual physical commodity. Sometimes called a spot commodity or actuals.
CASH CONCENTRATION - The movement of cash from lockbox or field banks into the firm's central cash pool...
Basis
The price difference between the actual or spot commodity and derivative market valuations. (See also Basis Risk).
Basis Point
A measurement of fluctuation of an investment, equal to 1/100 of one percent.
trading, the amount the futures price exceeds the price of the spot commodity. Related: inverted market premium payback period. Also called break-even time, the time it takes to recover the premium per share of a
convertible security.
In addition to the deviations created because of the time gap between expiry of the futures contract and the spot commodity, product quality, location of delivery, and the actuals may also vary.
(2) In futures trading, the amount the futures price exceeds the price of the spot commodity.
Weakening - Is a hedging or risk management term used to describe the relative loss of value between the underlying market and the hedge vehicle. It suggests that the cash or spot commodity or market is becoming less valuable relative to the futures ...
A person or firm who has sold or is short the spot commodity and who has hedged with a purchase of futures....(Read more)
Sovereign Debt
Debt guaranteed by a government....(Read more)
Sovereign Risk
See country-specific risk....(Read more) ...
Premium
(a) Amount paid for a bond above the par value. (b) The price of an option contract; also, in futures trading, the amount the futures price exceeds the price of the spot commodity.
Option premium
The option price.
Futures contracts trade in a "cost-of-carry market" where the underlying commodity can be stored, insured, and converted into the future easily and inexpensively. Arbitrageurs, because of the ease of switching from the spot commodity to futures, ...
spot commodity A commodity traded on the spot market, with the expectation that the buyer will take delivery spot market A market in which commodities, such as grain, gold, crude oil, or RAM chips,...
 See also: Futures price, Convertible security, Expected return, Expense, Risk premium
  
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