Spot market
A spot market (also cash market , locomotive market or effective market ) is the economic place where the supply and demand of spot or cash transactions meet. Its counterpart is the futures market . Objects of trade on the cash markets are in particular foreign exchange , securities or commodities that are traded according to standardized contracts. A mutual fulfillment period of a maximum of two trading days is usual; Transactions beyond this are included in the futures market.
history
The forerunners of today's cash markets are the trade in goods and raw materials , which initially used the terms locomotive, prompt, delivery or effective business. The expressions "prompt delivery" or "by cash register" (afterwards cash , comptant or bank transaction [ kõ tã: ]) indicated the immediate due date . The Komptant store got its name from the French “marché au comptant” (cash market). The locomotive business derived its name from the Latin word "locus" (place, place, tangible). Even the English "spot cash" (immediate payment) required that the product was available on the market or stock exchange available ( "place") or within a very short period and immediately ( english on the spot to pay) had. Buyers and sellers submitted to the custom of trading , either immediately or a few days later, to fulfill their obligations. The simplest form of purchasing goods was the locomotive purchase, which consisted of goods that were in stock, immediately available and "tangible".
Origin of the term
The term spot market was also used by the oil trade, where it describes the trading place for mineral oil products and crude oils and uses the short fulfillment period of two trading days. For mineral oil, the spot market in Rotterdam is decisive in Europe , where many mineral oil companies and refineries are based because of the oil port . It was originally only a residual market for refined products and less for crude oil. In the 1970s, trade slowly expanded to include crude oil, but by the end of the 1970s, no more than 10% of international oil deliveries were handled on the spot markets. At the end of 1982, more than half of the internationally traded crude oil was already running on the spot market or was being sold at prices that were based on the spot market. The market responsible for Europe and Germany is the Rotterdam spot market, a “virtual” market whose market participants are located all over Europe; Business is done through computer trading. Around 40% of global oil trading is now carried out via spot markets.
The term spot market is now also applied to cash markets for trading in securities, foreign exchange, electricity , metals and natural gas .
Mutual obligations
The demarcation between the cash market and the futures market takes place in particular through the period of fulfillment of the mutual service promises. The prices traded on a cash market are called the spot or flat rate , while in emissions trading one speaks of the clearing price of a certificate . The buyer on the cash market has to pay the equivalent value resulting from the spot rate within two trading days, while the seller must also make the agreed trading item available to the buyer within this period. For the respective trading object, a trading unit is defined as the minimum sales volume for the cash market. In the case of crude oil, this is, for example, a barrel of light sweet crude oil or a barrel of Brent crude oil .
Breakdown
In exchange the cash market for securities may based on the level of regulation (admission requirements) in the Regulated Market and the Open Market are divided. Until 2007 there was also the official market . The Frankfurt Stock Exchange renamed its Regulated Unofficial Market to " Open Market " in 2005 .
Web links
Individual evidence
- ^ Josef Hellauer : System der Welthandelslehre: a teaching and manual of international trade , Volume 1, 1920, p. 303.
- ↑ Julius Kähler: World trade and German imports: A description of the production areas, the world trade goods and the technology of the import business , 1926, p. 351.
- ↑ Mineralölwirtschaftsverband e. V .: Price formation on the crude oil market , 2004, p. 24.
- ^ Freiverkehr (Open Market). In: Börsenlexikon. Frankfurter Allgemeine Zeitung, accessed on April 7, 2017 .