Spot Price
The current market price at which a commodity can be bought or sold for immediate delivery.
The spot price is the price agreed upon for immediate delivery and payment of a commodity. In practice, "immediate" means within the standard settlement window for the physical market — two business days for most commodities.
Spot prices are the reference benchmark from which futures prices are derived. The difference between spot and futures price at any given maturity reflects the cost of carry — storage, insurance, financing — adjusted for the convenience yield of holding the physical good.
Traders track spot prices via index benchmarks: WTI for US crude, Brent for global crude, COMEX for gold and copper, NYMEX Henry Hub for natural gas.
Related Terms
Backwardation
A futures market where near-term contracts trade at a premium to deferred contracts, generating positive roll yield and signalling near-term supply tightness.
AdvancedBenchmark Price
A widely accepted reference price for a commodity that other grades, contracts, or products are priced against — WTI, Brent, Henry Hub, and COMEX gold are key examples.
BeginnerCommodity
A raw material or primary agricultural product that is interchangeable with others of the same grade and traded on organized exchanges.
BeginnerCommodity Index (GSCI / BCOM)
A rules-based basket of commodity futures — the S&P GSCI is production-weighted and energy-heavy; the Bloomberg Commodity Index (BCOM) is diversified with per-commodity caps.
AdvancedContango
A market structure where futures prices are higher than the current spot price, creating negative roll yield for long futures holders.
AdvancedConvenience Yield
The implicit benefit of holding physical inventory of a commodity rather than a futures contract — what justifies backwardation.
AdvancedFutures Curve
The graph of futures prices across successive delivery months for a commodity, revealing whether the market is in contango or backwardation.
IntermediateGold
The premier precious metal and safe-haven asset, priced in $/troy oz on COMEX and driven by real interest rates, dollar strength, and risk sentiment.
BeginnerSpot-Futures Basis
The difference between the spot price and a futures price for the same commodity — the numerical expression of carry, storage, and convenience yield.
IntermediateWTI Crude
West Texas Intermediate crude oil — the US benchmark grade traded on NYMEX, priced in $/barrel and settled at Cushing, Oklahoma.
Beginner