Spot trading is a type of trading where financial instrument, such as cryptocurrencies, currencies, or commodities are bought or sold for immediate delivery.
This means that the transaction is settled on the spot with the trading parties paying and receiving the assets almost instantly. Unlike derivatives trading, which involves the exchange of contracts based on the future value of the underlying asset, spot trading is straight forward and involves the direct exchange of assets.
Spot trading usually takes place on spot markets, where assets are traded for immediate delivery. These markets can be physical locations, such as traditional stock exchange, or virtual platforms, such as cryptocurrency exchanges!!!