Spot Next

Categories: Trading

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.

Related or Semi-related Video

Finance: What is NYMEX?25 Views

00:00

Finance allah shmoop what is nynex Sounds like a snooty

00:07

new fusion restaurant in soho doesn't it Well in fact

00:11

it isn't the new york mercantile exchange or the merc

00:15

if you want to sound like an insider is just

00:18

a trading post which covers the basics in the land

00:21

of commodities like gold sugar natural gas cotton and corrupt

00:26

congressmen you can trade them now on a fantasy league

00:29

It's this building here in manhattan right along the hudson

00:32

perfect for anyone second guessing any of their investment decisions

00:37

although in reality there are now zero transactions done inside

00:41

the actual exchange This being the twenty first century and

00:45

all everything is elektronik Those recently is two thousand sixteen

00:49

If you prefer to get your hands feet and soul

00:51

dirty you could head on down to one north end

00:54

avenue hop into the pit there and scream and jest

00:58

iq yah late wildly along with a handful of others

01:01

on the physical trading floor Yeah listen to him scream

01:04

but because investors by and large traded in a trek

01:07

to the exchange with a few clicks on their mac

01:10

well everything is now entirely on the interwebs as they

01:15

call them in the midwest But while the physical location

01:18

today is just houses well webs Yeah you can actually

01:22

trade on the nymex in your underwear It's Kind of 00:01:25.003 --> [endTime] cool

Find other enlightening terms in Shmoop Finance Genius Bar(f)