Spot Price | Practical Law

Spot Price | Practical Law

Spot Price

Spot Price

Practical Law Glossary Item 1-501-4303 (Approx. 2 pages)

Glossary

Spot Price

The price payable for any asset that is to be delivered immediately or almost immediately. Projects that rely of revenues from sales of their output at spot prices and not fixed terms under a long term offtake agreement pose a higher risk to lenders and investors because of the variability and uncertainty in the revenues the project can generate.
For more information on these issues mechanisms used to mitigate these risks, see: