Spot Prices
Same as cash price, the price at which a commodity is selling at a particular time and place.
Spot prices are continually changing -- they fluctuate according to varying supply and demand. To mitigate the risk of continuously changing prices, investors created derivatives.
Spot prices vary depending on the amount of inventory in cold storage and the seasonal demand for bacon as well as the origin of the pork; the former drove the prices of the futures as well, back in the day. [5]
[edit] See also
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Spot Prices: The price at which a commodity is selling at a particular time and place.
Spread: A trade in which two related securities are traded to take advantage of the price differences in between the two.
A theory that spot prices at some future date will be equal to today`s forward rates.
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Convergence: A situation when futures prices and spot prices come together at the futures expiration.
In a perfect market the relationship between futures and spot prices depends only on the above variables; ...
How can this affect the spot prices of the CHF?
For example, if a foreign firm wishes to acquire a business in Switzerland, it will have to pay for it using CHF.
Today, short-term futures and spot prices of gold and silver have almost nothing to do with the physical supply and demand dynamics of gold and silver, as odd as that may sound.
Unbiased predictor
A theory that spot prices at some future date will be equal to today's forward rates.
Unbundling
Separation of a multinational firm's transfers of funds into discrete flows for specific purposes. See: Bundling.
Convergence When futures prices and spot prices come together at the futures expiration.
Conversion Arbitrage Traders buy and sell two different securities (or synthetic securities), forcing equivalent prices for equivalent securities.
In a surplus crude market, spot prices generally fall faster than postings, regardless of whether prices decline more slowly, as in Case 1, or more rapidly, as in Case 2 ...
Premium - determines the amount at which future prices will surpass spot prices.
Price Quotations - quotes of one currency price against another currency.
Profit - amount gained as a result of trading operations.
The number of ounces of silver required to buy one ounce of gold at current spot prices.
Good This Week Order
Order which is valid only for the week in which it is placed.
Gold/Silver Ratio: The number of ounces of silver required to buy one ounce of gold at current spot prices.
Good This Week Order (GTW): Order which is valid only for the week in which it is placed.
" Simply stated, backwardation occurs when spot prices represent a premium over prices for long-dated futures contracts, and in commodity markets significant backwardation generally underscores a state of undersupply in the market.
Definition
Gold-Silver ratio
The number of ounces of silver required to buy one ounce of gold at current spot prices.
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contango A condition in which distant delivery prices for futures exceed spot prices.... contingency An event that may or may not occur. More specifically, this is a possible but...
 See also: Spot price, Spot, Market, Trading, Future
  
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