Spot FX refers to the immediate exchange of assets or currencies through a physical delivery. Settlement of the transaction typically occurs within two working days of the trade. Unlike futures trading and options trading, which involve delivery or settlement at a future date, spot trading is executed immediately without any agreement for a future date.
Spot trading is widely used in the foreign exchange market, commodity market, and stock market, allowing investors to buy and sell various currency pairs, commodities, or stocks. It provides a fast and direct method for trading physical assets and offers real-time market pricing and liquidity to counterparties.
In summary, spot trading is a form of spot trading that involves immediate physical delivery and is used for buying and selling various assets.