#SpotVSFuturesStrategy today trading sessions deep dive spot trading Of course! Let’s briefly explain spot trading in simple terms:
✅ What is Spot Trading?
Spot trading means buying or selling an asset (like a cryptocurrency, stock, commodity, or currency) for immediate delivery at the current market price (called the spot price). In other words, you pay for it now, and you receive it now (or very shortly).
For example:
You go on a crypto exchange and buy 1 BTC at $60,000. That’s spot trading. You pay $60,000, and the BTC goes into your account right away.
You buy gold on a commodities market at the current price and receive ownership immediately (or within a couple of days, depending on the settlement).
Key Features of Spot Trading:
Immediate settlement: Payment and asset exchange happen right away (or typically within 2 days in traditional markets).
Ownership: You own the asset directly (e.g. actual crypto coins or shares).
Market-driven price: You pay the price that’s currently available in the market (the spot price).
Simple and straightforward: No complex contracts or future obligations.
Difference from Futures/Derivatives:
Spot trading = you buy or sell the asset itself.
Futures or derivatives = you trade contracts that bet on future price movements, without necessarily owning the underlying asset.