A Spot Market is a public financial market where commodities, currencies, or securities are traded for immediate delivery. In this market, transactions occur "on the spot," meaning that the buyer pays for the asset and receives it right away, usually within two business days. Prices in the spot market are determined by current supply and demand. Spot markets are commonly used for trading various assets, including gold, oil, and foreign exchange. Unlike futures markets, where contracts are set for future delivery, spot markets focus on immediate transactions. This makes them essential for businesses and investors needing quick access to assets.