#BINANCE #spot

Spot Trading

What is spot trading or spot trading?

Spot trading, also known as spot trading, refers to the immediate purchase and sale of financial assets such as currencies, commodities, stocks, indices, etc. at their current market price. Unlike futures or options, where the transaction is scheduled for a future date at a pre-agreed price, spot trading involves immediate execution and immediate delivery of the asset in exchange for payment.

In spot trading, transactions are usually settled within a few business days, depending on the specific settlement times of each financial market. This means that the buyer pays the agreed price and receives the asset immediately, without significant delay.

Spot trading is commonly used by investors, traders, and businesses for a variety of reasons, including hedging, speculation, and short-term investing. It can also be used for foreign currency conversion in international trade.