Forex Trading Terms: Spot Trade

November 19, 2008

Understanding what it means to be on the spot marketOften, currency trading in real time is referred to as a "spot trade." When learning forex trading, it can help to understand what such terms mean.

Spot trade

Basically, a spot trade is a currency trade (it can also apply to commodities) that takes place "on the spot," or immediately. It means that the currency is "delivered" now, as opposed to some point in the future (known as a currency future).

It is also worth noting that futures contracts that expire within a month are consider spot, even though, technically, the delivery takes place in the future.

See Also

• Make a Spot Trade
  Learn forex trading and terms

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