Spot price is not a term in futures trading, but a commonly used term or method in physical trading. As futures are used by more and more manufacturers, consumers and traders, the price uncertainty is increasing.

In order to lock in the fixed price level, the LME price base of the London Metal Exchange is used for the physical trade of metals, which leads to the point price. The London Metal Exchange provides a price basis for spot prices. Without the London Metal Exchange market, there would be no point price for physical trade, but buyers and sellers would directly determine the price when signing the contract.