In finance, a spot contract, spot transaction, or simply spot, is a contract of buying or selling a commodity, security or currency for settlement (payment and delivery) on the spot date, which is normally two business days after the trade date. The settlement price (or rate) is called spot price (or spot rate). A spot contract is in contrast with a forward contract or futures contract where contract terms are agreed now but delivery and payment will occur at a future date.
Read more about Spot Contract: Spot Prices and Future Price Expectations, Spot Date
Famous quotes containing the words spot and/or contract:
“Near this spot are deposited the remains of one who possessed Beauty without Vanity, Strength without Insolence, Courage without Ferocity, and all the Virtues of Man without his Vices. This praise, which would be unmeaning Flattery, if inscribed over human ashes, is but a just Tribute to the Memory of BOATSWAIN, a Dog.”
—John Cam Hobhouse (1786–1869)
“A contract for better for worse is a contract that should not be tolerated.”
—George Bernard Shaw (1856–1950)