Spotkauppa

Spotkauppa, or the spot market, is the market for buying and selling assets for immediate delivery and payment. In contrast to forwards and futures, which involve delivery at a set future date, spot transactions settle promptly and reflect current availability and demand. The spot price is the prevailing market price at which an asset can be bought or sold right away, and it can differ from forward prices that include costs such as storage, financing, and carry.

Assets traded on the spot market include physical commodities (such as crude oil, metals, and agricultural products), foreign currencies, and certain financial instruments. Trading can occur on organized exchanges, often with central clearing to improve transparency and reduce counterparty risk, or through over-the-counter mechanisms for less standardized assets. Settlement conventions vary by asset and market; many currency trades settle in two business days (T+2), while commodities may have immediate or short settlement cycles.

The spot market plays a central role in price discovery and liquidity provision. Prices respond quickly to changes in supply and demand, news, and macro conditions, informing buyers and sellers in the short term. Market participants span producers, consumers, traders, financial institutions, and investors, including those seeking hedges or speculative opportunities. Spot trading complements derivative markets, which derive value from the spot price and are used for hedging and risk management. Historically, it has formed the basis for day-to-day commerce and the formation of longer-term price expectations.