Spot trading is the process of buying or selling financial assets like cryptocurrencies, stocks, or commodities for immediate settlement—meaning the transaction is settled "on the spot."
In simpler terms:
You buy or sell an asset (like Bitcoin or Ethereum)
The transaction is settled instantly or within a very short time (usually T+0 or T+2)
You own the asset immediately and can withdraw or trade it again
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📌 Example (Crypto Spot Trading):
You buy 1 BTC at $30,000 on Binance Spot Market
Your account is debited $30,000 and credited 1 BTC immediately
You now own 1 BTC, which you can hold, sell, or transfer
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✅ Key Features:
Real ownership of the asset
Market price based
No leverage (unless margin is added)
Best for long-term investors or beginners