What is Spot Trading??#BinanceSpot
Spot Trading is a type of trading in financial markets, where assets such as currencies, stocks, commodities or digital currencies are bought and sold directly at the current market price (spot price). Transactions are executed and settled immediately or within a very short period (usually two business days maximum).
Advantages of Spot Trading:
1. Transparency: Prices are clear and direct without the need for additional complications.
2. High liquidity: Assets can be bought or sold easily due to the availability of buyers and sellers.
3. Simplicity: It does not require deep knowledge of financial derivatives or complex instruments.
4. No leverage (unless added later by the platform).
Practical example:
If you are trading digital currencies, you can buy Bitcoin (BTC) for dollars (USD) at the current market price.
If the spot price of Bitcoin is $30,000, you will pay this amount directly to buy the currency.