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Spot Trade

Spot Trade Definition

Spot Trade, also known as "cash trade" means trade of a foreign currency, commodity, or other item for immediate delivery. The purchase or sale is settled "on the spot”.


Additional meaning of Spot Trade:

The most common kinds of spot trades are foreign-exchange contracts which are settled electronically, therefore forex market is very fast. The opposite of spot trade transactions are futures contracts, but futures that expire in the current month are also considered spot trades.









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