#BinanceTurns8 Spot trading refers to the buying and selling of financial instruments, commodities, or currencies for immediate delivery and payment.

Key Characteristics:

1. *Immediate settlement*: Transactions are settled on the spot, typically within a short period (e.g., two business days).

2. *Current market price*: Trades are executed at the current market price.

3. *Physical delivery*: Commodities or currencies are delivered to the buyer.

Examples:

1. *Forex spot trading*: Buying and selling currencies at the current exchange rate.

2. *Commodity spot trading*: Buying and selling physical commodities like gold, oil, or agricultural products.

Advantages:

1. *Immediate execution*: Trades are executed quickly.

2. *Current market price*: Buyers and sellers get the current market price.

Disadvantages:

1. *Market volatility*: Prices can fluctuate rapidly.

2. *No hedging*: Spot trading doesn't provide protection against future price movements.

Spot trading is commonly used in various markets, including forex, commodities, and securities.