Spot trading refers to the purchase or sale of a financial instrument, such as a commodity, currency, or security, for immediate delivery and settlement. In spot trading, the transaction occurs "on the spot," meaning the buyer pays for the asset, and the seller delivers it shortly thereafter. This differs from other forms of trading, like futures or options, where the transaction is agreed upon today but executed at a later date. Spot trading is common in various markets, including foreign exchange (Forex), commodities, and some financial securities
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