What is “spot price”?

The spot price is the price a given asset trades at in a marketplace. It is determined by over-the-counter (OTC) trading, where traders make independent deals based on futures contracts. The spot price is determined by the data from next month’s futures contracts, where the spot price is the average net present value of the calculated future price.  An individual can immediately buy or sell the asset at the spot price. For precious metals, the spot price represents the price of 1 oz of the precious metal. The spot price changes continuously throughout the day.