Also called cash trades, spot trades occur in the spot market and are characterized by the immediate or near-immediate delivery of the commodity in question. Foreign currency, stocks, and commodities are typically transacted through spot trades.
Spot trades are the opposite of futures contracts, whereby two counterparties agree to transact some asset or commodity at a specific price and date in the future. Commodities are also frequently bought and sold on the spot market. For example, crude oil is sold for a certain price per barrel on the spot market. The oil is then delivered over time at the price that it was purchased.
With the advent of internet-based trading systems and electronic money transfers, spot trading has become more prevalent over the past decade.
The currency market is the largest spot market in the world -- to learn more about trading foreign currency (known as FOREX).
In the over the counter market, trades are based on contracts made directly between two parties, and not subject to the rules of an exchange.
The contract terms are agreed between the parties and may be non-standard. The price will probably not be published.
The spot energy market allows producers of surplus energy to instantly locate available
buyers for this energy, negotiate prices within milliseconds, and deliver energy to the
customer just a few minutes later.
Examples of energy spot markets for natural gas in Europe is the National Balancing Point (NBP) in the UK.
How can I start trading
Trade on popular world class platform
- Fast, reliable trade execution
- Multi-asset coverage; FX, Indices, Commodities
- No dealing desk, no requotes
- Expert Advisors supported
Why thousands of investors choose us
- Trade over 1500 instruments with leverage up to 200:1Trade over 1500 global CFD markets including Forex, Cryptocurrencies, Indicies, Commodities, Share CFDs and ETFs.
- Trusted and
regulated brokerWe are regulated by the world's biggest supervision authorities including the Financial Conduct Authority.
- Get cashback
on your tradesGet cashback on your closed positions and be rewarded for your monthly trading volumes. You can then use any cashback however you like.
- Ultra Fast executionWe are regulated by the world's biggest supervision authorities including the Financial Conduct Authority.
- Customer support 24/7Our customer support is available 24/7, ready to answer all your questions and solve all your problems.
Your satisfaction is our main goal.
- No requotesOur advanced trading technology allows you to avoid requotes and trade with a full trust that your trade will be executed smoothly.