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WHAT IS A SPOT PRICE? (EASIEST EXPLANATION) Straight to the Point 3 года назад


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WHAT IS A SPOT PRICE? (EASIEST EXPLANATION) Straight to the Point

In around two minutes you will know what is a Spot Price. You will get both professional definition and easy explanation. No intro, no outro, straight to the point. ► My 204 Companies Watchlist: https://bit.ly/3cbWL3f ► Get $10 for Opening an Investment Account with Wealthsimple (Canada, USA, UK): https://bit.ly/3kzztaD ► Book FREE 15 Minutes Call "The Power of Investments": https://bit.ly/3kvL36C ► Download my FREE eBook about Investments: https://bit.ly/2FL2UHI ► Follow Me On Instagram:   / artemdkrv   Spot Price is the current price at which a commodity or a security can be bought for an immediate delivery. The term spot price is mainly used in relation to futures contracts. And if you are not sure what a futures contract means, feel free to watch one of my previous videos. Imagine, you want to buy an oil futures and you see that at this very moment oil prices are set to be at $55 per barrel. This $55 per barrel is the spot price for oil. Meaning, that if you are to buy this oil futures right now, you will end up paying a price which is very close to $55 per barrel. And the reason why it is not going to be exactly $55 is because spot prices are constantly changing. Just like stock prices. Spot prices change based on supply and demand for underlying assets. Which is oil in our case. Same thing for sellers. If you are to find an immediate buyer for your asset, which is, let’s say, once again oil, you will end up selling oil at a price that is showing at the moment of sale. Which is professionally called a spot price. If you find my content interesting, please consider subscribing to my channel. It helps a lot as a beginner creator. And let me know if there is anything you would like to know about personal finances and investing.

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