What is the difference between Spot markets and Futures markets?

Question

What is the difference between Spot markets and Futures markets?

Answer 1

Spot markets and futures markets are terms that refer to whether the assets (in the physical assets markets) are bought or sold for ‘on-the-spot’ delivery (literally, within a few days) or for delivery at some future date, such as six months or a year into the future. Futures , are a standardized, transferable, exchange-traded contract that requires delivery of a commodity, bond, currency, or stock index, at a specified price, on a specified future date.