Price Discovery A method of determining the price for a specific commodity or security through basic supply and demand factors related to the market. Investopedia Says: Price discovery is the general process used in determining spot prices. These prices are dependent upon market conditions affecting supply and demand. For example, if the demand for a particular commodity is higher than its supply, the price will typically increase (and vice versa). Related Terms: Commodity Demand Economics Price Basing Spot Price Supply |