Spot trading refers to buying or selling an asset at the current market price with immediate delivery, meaning the instantaneous transfer of ownership of the asset. Generally, spot traders make profits through various small trades, taking advantage of daily market fluctuations. Compared to contract trading, which carries higher risks and potentially higher profits, spot trading is less risky and more versatile.
Spot trading is applicable in all types of financial markets, with the most popular being the forex, cryptocurrency, and stock markets.