A spot market is a public financial market where assets are traded right away. A buyer pays a seller for an asset using fiat currency or another form of trade. Depending on what is being traded, delivery of the asset is frequently immediate.
Due to traders’ upfront payments, spot markets are sometimes known as cash markets. Spot markets can take many different shapes, and third parties called exchanges usually make trading easier. Over-the-counter (OTC) trades allow you to conduct direct business with other individuals. Later, we’ll delve into these.