Introduction to Spot Trading

What is Spot Trading?

Spot trading refers to a series of economic transactions occurring between buyers and sellers in any type of financial market, such as stock exchanges, cryptocurrency markets, and foreign exchange. In spot trading, the transaction involves buying or selling financial products at the current market price, often referred to as the "spot" price. 

Spot trading occurs across all types of markets regardless of the type and specifics of the financial products being traded. It is an ideal trading method for new traders and investors because it allows them to learn the basics of trading without a high level of risk.

In simple terms, most everyday transactions are spot transactions. For example, consider buying a coke for $3.00 at a convenience store. The amount paid is the current price of the coke at the time of the transaction. When you hand over $3.00 to the cashier, the coke becomes yours. As this example illustrates, spot trading involves immediate payment at the time of the transaction.