Spot Next

The spot market involves items for delivery...now. If you buy a barrel of oil in the spot market, you can get it right away. But what if you don't want it right away? What if you want it tomorrow? That situation has a name: spot next.

We know. It sounds like a nightclub a TV character would start on a sitcom. But it's the actual name for a contract that delivers on the day after the current spot date. It comes up most often in foreign currency trading, but can apply in any market.

Yeah, it's fundamentally a fancy way to say "the next business day." If the spot date is March 15, the spot next would be March 16. However, remember: only business days count. So...spot next from Friday would be the next Monday, unless it's the 4th of July or something. Then you'd have to wait until Tuesday, like whoever Wimpy is buying a hamburger from.