Excerpt from: Forex Training
|
 |
| November 18, 2008 | | Understanding what it means to be on the spot market | Often, 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.
| Topic Tags: commodities, currency trade, currency trading, forex terms, forex trading, futures, spot market, spot trade | |
|
|
