#SpotVSFuturesStrategy Introduction to Spot and Futures Markets

The financial markets are diverse, offering various instruments and markets for traders and investors. Among these, spot and futures markets are fundamental, each with unique characteristics and roles in the financial ecosystem.

What is the Spot Market?

The spot market, also known as the cash market, is where financial instruments, such as commodities, currencies, and securities, are traded for immediate delivery. Delivery is the exchange of the asset for payment and typically occurs within a short timeframe after a trade is executed.

Spot markets are characterized by their immediacy. Prices in these markets reflect the current market value of an asset, influenced by supply and demand dynamics. This makes the spot market a critical indicator of an asset's present value.