spot price: meaning, definition, pronunciation and examples
C2Formal, Technical
Quick answer
What does “spot price” mean?
The current market price at which a particular asset (like a commodity, currency, or security) can be bought or sold for immediate delivery and payment.
Audio
Pronunciation
Definition
Meaning and Definition
The current market price at which a particular asset (like a commodity, currency, or security) can be bought or sold for immediate delivery and payment.
In broader contexts, it refers to the quoted price for any item or service available for immediate transaction, contrasting with futures or forward contract prices that specify delivery at a later date.
Dialectal Variation
British vs American Usage
Differences
No significant difference in meaning or usage. Spelling remains consistent. The concept and terminology are identical in both financial markets.
Connotations
Neutral and technical in both varieties.
Frequency
Equally common and necessary in the financial sectors of both the UK and US.
Grammar
How to Use “spot price” in a Sentence
The spot price of [COMMODITY] is...[COMMODITY] is trading at a spot price of...We bought it at the current spot price.to pay/quote/benchmark against the spot priceVocabulary
Collocations
Examples
Examples of “spot price” in a Sentence
verb
British English
- The trader decided to spot-price the crude oil shipment.
American English
- The refinery will spot-price its feedstock purchases this month.
adverb
British English
- It was purchased spot-price, not on a futures contract.
American English
- They agreed to buy the metal spot-price.
adjective
British English
- The spot-price market for natural gas is highly volatile.
American English
- They entered into a spot-price contract for immediate delivery.
Usage
Meaning in Context
Business
Essential in trading, procurement, and financial reporting. E.g., 'The treasury department hedges against fluctuations in the spot price of copper.'
Academic
Used in economics, finance, and commodity market research papers.
Everyday
Very rare. Might be used by individuals investing in commodities like gold.
Technical
The precise, defining term in commodities trading, energy markets, and foreign exchange (forex).
Vocabulary
Synonyms of “spot price”
Strong
Neutral
Weak
Vocabulary
Antonyms of “spot price”
Watch out
Common Mistakes When Using “spot price”
- Using 'spot price' to mean a discounted or sale price (e.g., in a shop).
- Confusing it with 'spot' as in a small mark or a place.
- Incorrectly hyphenating as 'spot-price' in standard prose (it's typically an open compound).
FAQ
Frequently Asked Questions
No. While related, 'spot price' is a technical term from wholesale trading markets (commodities, forex). The 'current price' in a shop is a retail price.
It is uncommon but possible in very specific technical contexts, e.g., for immediately available cloud computing resources or last-minute freight services, by analogy to commodity markets.
The spot price is for immediate ('on the spot') delivery and payment. The futures price is agreed today for delivery and payment at a specified future date.
It reflects real-time changes in supply and demand, geopolitical events, weather, production reports, and trader sentiment, as it represents the price for immediate transaction.
The current market price at which a particular asset (like a commodity, currency, or security) can be bought or sold for immediate delivery and payment.
Spot price is usually formal, technical in register.
Spot price: in British English it is pronounced /ˈspɒt ˌpraɪs/, and in American English it is pronounced /ˈspɑːt ˌpraɪs/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “on the spot (market)”
Learning
Memory Aids
Mnemonic
Think of a 'spot' as a specific point in time – RIGHT NOW. The 'spot price' is the price you pay if you want something right on the spot, immediately.
Conceptual Metaphor
MARKET AS A PHYSICAL PLACE (The 'spot' is the specific, tangible location where the transaction happens now).
Practice
Quiz
Which of the following is the primary antonym of 'spot price' in a trading context?