The spot market is a financial market open to the public, where assets are traded and settled instantly. Buyers and sellers use fiat currency or other forms of payment to purchase or sell assets. Asset delivery is typically completed immediately, depending on the asset being traded.
The spot market is also referred to as the "cash market" because traders pay upfront for the assets.
There are various forms of spot markets, and third parties (known as trading platforms) typically facilitate smooth transactions. Additionally, you can also trade directly with others through over-the-counter (OTC) transactions.