It’s the market you need to dip into if you need something now.
You find out that your fiancé has fallen in love with someone else while backpacking in Europe. You need to get on the next flight to Paris to try to win them back. You are now in spot market for plane tickets. You’re going to pay whatever the rate is for that particular flight leaving almost immediately.
The spot market sits in opposition to the futures market, where assets can be bought for delivery on some future date. There’s only one price from the spot market, because you need delivery right now. However, if you're more flexible about when you need something, you could shop around for different prices. If you could leave for Paris anytime this summer, you could shop for a departure time that had a cheaper price.
The term "spot market" comes up a lot in commodity and currency trading. For those items, there are futures and options markets, with contracts expiring in the future. And there's a spot market, which involves immediate delivery.
It also comes up for financial instruments. Again, there's a spot market for immediate delivery (the regular stock market is a spot market). Meanwhile, there's a separate futures and options market for contracts with forward dates.
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Finance: What is NYMEX?25 Views
Finance allah shmoop what is nynex Sounds like a snooty
new fusion restaurant in soho doesn't it Well in fact
it isn't the new york mercantile exchange or the merc
if you want to sound like an insider is just
a trading post which covers the basics in the land
of commodities like gold sugar natural gas cotton and corrupt
congressmen you can trade them now on a fantasy league
It's this building here in manhattan right along the hudson
perfect for anyone second guessing any of their investment decisions
although in reality there are now zero transactions done inside
the actual exchange This being the twenty first century and
all everything is elektronik Those recently is two thousand sixteen
If you prefer to get your hands feet and soul
dirty you could head on down to one north end
avenue hop into the pit there and scream and jest
iq yah late wildly along with a handful of others
on the physical trading floor Yeah listen to him scream
but because investors by and large traded in a trek
to the exchange with a few clicks on their mac
well everything is now entirely on the interwebs as they
call them in the midwest But while the physical location
today is just houses well webs Yeah you can actually
trade on the nymex in your underwear It's Kind of 00:01:25.003 --> [endTime] cool
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