Editing Spot contract (section)

{{Short description|Contract to buy or sell a commodity, security or currency for immediate settlement}}
{{See also|Spot market}}
{{Distinguish|Spot delivery}}
{{More citations needed|date=January 2021}}

In [[finance]], a '''spot contract''', '''spot transaction''', or simply '''spot''', is a contract of buying or selling a [[commodity]], [[security (finance)|security]] or [[currency]] for immediate [[Settlement (finance)|settlement]] (payment and delivery) on the [[spot date]], which is normally two business days after the [[trade date]]. The settlement price (or rate) is called '''spot price''' (or '''spot rate'''). A spot contract is in contrast with a [[forward contract]] or [[futures contract]] where contract terms are agreed now but delivery and payment will occur at a future date.