What are Spot Market and Derivative Market?

Spot markets are markets where payments for purchases and sales and the delivery of the securities or goods in question are made immediately.

The derivative market consists of forward, futures, option and swap contracts that must be fulfilled in the future and other contracts derived from these contracts. Since the value of such contracts at maturity is determined by the price of the asset subject to the contract, these contracts are called derivative products and the markets in which they are traded are called derivative markets. While futures and options transactions are traded on exchanges (organized markets), swaps and forward transactions are traded in unorganized markets.