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What is the difference between spot price and exchange delivery settlement price?
The spot price and exchange delivery settlement price are two terms commonly used in the context of commodities trading. While they are related, there are some key differences between them.

The spot price is the current market price at which a commodity can be bought or sold for immediate delivery. It is based on supply and demand dynamics and can fluctuate rapidly in response to market conditions. The spot price is typically used by traders who want to buy or sell a commodity in the short term.

The exchange delivery settlement price, on the other hand, is the price at which futures contracts for a specific commodity are settled upon expiration. It is determined by the exchange and is based on various factors such as the spot price, storage costs, interest rates, and delivery location. The exchange delivery settlement price is typically used by traders who want to hedge against price movements in the long term.

Overall, the main difference between the spot price and exchange delivery settlement price is the timeframe in which they are used. The spot price is used for immediate transactions, while the exchange delivery settlement price is used for futures contracts that settle in the future.
The spot price and exchange delivery settlement price are terms commonly used in financial markets, particularly in commodities and foreign exchange. The spot price refers to the current market price at which a financial instrument, such as a commodity or currency, can be bought or sold for immediate delivery and payment. It represents the real-time value of the asset in the open market.

On the other hand, the exchange delivery settlement price is the agreed-upon price at which a contract will be settled upon its expiration. In futures and options trading, participants agree to buy or sell an asset at a specified price in the future. The settlement price is determined by the exchange and is used to calculate gains or losses for contract holders at the time of expiration. While the spot price reflects the current market value, the settlement price is a predetermined value used for contractual settlement in derivatives markets.

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