Spot Trading

Definition ∞ Spot trading involves the immediate purchase or sale of an asset for delivery and payment at the current market price. In this type of transaction, the buyer takes ownership of the asset, and the seller receives payment on the spot, distinguishing it from futures or options trading where delivery is deferred. This direct exchange is fundamental to most retail transactions and forms the basis of many asset markets. The price agreed upon is the prevailing market rate.
Context ∞ Spot trading remains the primary mode of interaction for many retail participants in the digital asset space, with exchanges facilitating these immediate exchanges. Current discussions often revolve around the liquidity of spot markets, the impact of order book depth on price discovery, and the efficiency of settlement processes. The accessibility and transparency of spot trading platforms are crucial for ensuring fair market access and preventing manipulative practices.