HopefullyInLawSchool
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LSDefine
Simple English definitions for legal terms
spot month
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A quick definition of spot month:
Spot month: The spot month is the month when a futures contract ends and can be delivered. It's like the due date for a homework assignment. When the spot month arrives, the person who bought the futures contract has to either take delivery of the product or sell the contract to someone else.
A more thorough explanation:
Spot month
The spot month refers to the month in which a futures contract matures and becomes deliverable.
For example, if a futures contract for crude oil has a spot month of June, it means that the contract will expire and become deliverable in June.
Another example is a futures contract for wheat with a spot month of December. This means that the contract will expire and become deliverable in December.
The spot month is important for traders and investors who are looking to either take delivery of the underlying asset or roll over their futures contract to a later month. It is also important for those who are looking to speculate on the price of the underlying asset, as the spot month can have a significant impact on the price of the futures contract.