Monday, July 23, 2012

Spot Vs. Forward Market

Spot market (also called cash or physical market) is the market where the trade takes place immedietly at the current price. Normally these contracts have 2 banking days of expiry and may incurred storage/warehouse charges for the additional holding periods.

Forward market is non-standardized market on which aggrement is done to deliver the asset at some specified future period at the prevailing price of the delivery period.

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