Spot Trading: Definition and Advantages
Spot trading is a type of financial transaction where assets are bought or sold immediately at the current market price (spot price). This form of trading is widely used in financial markets such as stocks, forex, cryptocurrencies, and commodities.
The main advantages of spot trading are its simplicity, transparency, and high liquidity. Investors do not need to use leverage or margin, which reduces the risk of significant losses. Prices are determined based on supply and demand at the time of the transaction, allowing investors to make decisions easily through market analysis.
However, spot trading also has limitations, especially in highly volatile markets. Investors need to conduct thorough research and implement effective risk management strategies. It is an ideal choice for those looking to engage in the market safely and intuitively.