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Question
Differentiate Spot Market from Future Market.
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Solution
| Basis for difference | Spot Market | Future Market |
| 1. Delivery | Delivery of Financial | Instruments immediately Delivery of Financial Instruments in Future. |
| 2. Settlement | The settlement is completed immediately. | The settlement is completed in the predetermined time frame in the future. |
| 3. Payment | Payment of cash occurs immediately. | Payment of cash occurs in the future. Not immediately. |
| 4. Known as | It is also known as Cash Market. | It is also known as the forwarding Market. |
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