Spot Trading
Spot trading is a financial transaction where assets like stocks, currencies, or commodities are bought and sold for immediate delivery and settlement, typically within two business days. It involves exchanging assets at the current market price, known as the spot price, for instant ownership transfer. This contrasts with derivatives trading, where contracts are based on future prices or conditions.
Developers should learn about spot trading when building or integrating with financial platforms, trading systems, or fintech applications that handle real-time asset exchanges. It's essential for creating systems that process immediate transactions, such as stock trading apps, cryptocurrency exchanges, or forex platforms, where users need to execute trades at current market rates without delays.