The term spot price is commonly used in futures and forward contracts. It is the current market price of the asset in financial markets where the asset can be a stock or commodity or currency, etc. Traders can buy and sell the security at the spot price with immediate delivery and settlement as against the future price or the contract price which refers to the price of the security at a later date or the contracted date.
The spot price of a security is determined by normal market forces like demand and supply of the security along with other internal and external factors that influence the price of the security on a daily basis.
