Glossary
Spot market: meaning, example and why it matters
A market where an asset is bought or sold for immediate delivery at the current price, as opposed to a futures or derivatives market.
Worked example
Purchasing 1 ETH at $3,000 on the spot market means paying $3,000 now and receiving the coin now. A futures contract on the same coin settles later.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
Spot trading involves actually owning the asset, unlike derivatives, which are contracts on its price.
Related terms
Frequently asked questions
Is spot trading free of leverage?
Usually yes, unless the platform offers margin on spot. Check each platform's terms.
Is this page investment advice?
No. Spot market is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.