Spot Commodity

Definition ∞ A ‘Spot Commodity’ is a raw material or agricultural product that is traded on the open market for immediate delivery. This contrasts with futures contracts, which involve delivery at a later date. Examples include gold, oil, and agricultural goods.
Context ∞ The concept of spot commodities is relevant in the digital asset space when considering stablecoins pegged to real-world assets or when analyzing correlations between traditional markets and cryptocurrencies. Discussions often arise regarding the physical backing of certain digital assets or the impact of commodity price fluctuations on broader financial markets. Future developments to watch include the tokenization of physical commodities and their integration into decentralized finance protocols.