Spot Options Spot Trading Versus Futures Trading

Spot Trading

When you think of the word "spot", think of "on the spot" or immediate. The spot rate of a commodity, currency or security is the quote given for a transaction's immediate settlement, with the settlement date usually taking place a couple of days after a trade is executed. It's like saying "I want to buy US dollars right now." The spot rate is locked in when the transaction is agreed to. The spot market is a 24-hour a day market, and transactions can be made at a bank, by phone or by the internet.
Tags: spot, spot rate