Spot market. Modern realities

The English word "Spot" means literally "place." Therefore, "in Spot" means "on the spot", and the spot market is where instant transactions occur. It is logical to assume that the goods are traded in this place, the properties and characteristics of which are well known. This product should be standardized in any part of the world. Logic has not let you down - the spot market trades in currency, precious metals, stones, grain, meat, gas, oil and other goods of "first" necessity.

Market participants

Of course, each of them is grouped in a certain place. For the sale and exchange of national currencies, various financial exchanges are used. In the auction participate:

1. Traders are traders who earn money by selling and exchanging currencies, acting in their own interests.
2. Brokers are people who work "on behalf and on behalf of", making transactions in the interests of third parties.

Do it all on time

By terms of payment and fixation of the exchange rate of currencies participating in the sale and purchase, the transactions are divided into three groups:

1. Payment on the day of commission (TOD from English today - today).
2. Payment for the next day (TOM - tomorrow, tomorrow).
3. The day after the conclusion of the transaction.

From theory to practice

The spot gold market , compared to the market of currencies and securities, is less dynamic, but more reliable, so the gold rate is not so high, but at least stable. Currency jumps are due to the fact that national currencies and corporate shares are more exposed to political conjuncture.

Let us give an example. Now there is a situation with the US public debt. The likelihood of a technical default made the spot market react instantly to falling demand and the price of Treasury bonds of the US federal reserve system, but gold is always in price. In addition, not all participants in the trades in this sphere are working with speculative goals (to buy goods at a lower price, in order to realize more expensive after a while). Many players conclude contracts for the needs of production (medicine, electronics, jewelry industry).

Natural gas is mostly sold in the forward market (where contracts are concluded today, and the delivery of goods is in the future), the spot gas market is small in volume. To deal here resorted to the principle of "intercept on time." Prices due to stops of gas production in the North Sea are approaching the prices of Gazprom products sold under futures contracts. This will lead to an increase in the sales of Russian gas in Europe.

For purchases of products (grain, meat, sugar), for the most part, forward exchanges are used (here it is possible to conclude a contract for the supply of wheat, which has not yet grown). Spot market for those who have not properly calculated their needs or could not keep stocks.

One of the most affected by the conjuncture is the sphere of production of the metallurgical industry. Index Metalsea (for its calculation, the average arithmetic of a certain list of products of three price categories is taken: from 1 ton, from 5 tons, from 20 tons, divided by 100) for several months every week, then increased or fell. Recent events in Syria and the associated reaction of world leaders have caused negative dynamics in spot markets.