A Spot Price is the current market price for buying or selling an asset with immediate effect.

In the context of decentralized finance (DeFi), the spot price refers to the current market price of a DeFi asset, such as a cryptocurrency or a token.

The spot price is an important concept in DeFi, as it can provide insight into the value of a particular asset and can help users to make informed decisions about their investments. The spot price is determined by supply and demand in the market, and it can fluctuate based on a variety of factors, such as market conditions, news events, and investor sentiment.

In DeFi, the spot price is often used as a reference point for other financial instruments, such as futures contracts or options. These instruments are often based on the spot price of the underlying asset, and they can provide investors with additional ways to gain exposure to the DeFi market and to hedge their risks.

« Back to Glossary Index