Crypto Terms:
Letter S
Jul 07, 2023 |
updated: Apr 02, 2024
What is Spot?
Spot -
the transaction involving selling or buying cryptocurrency for its current rate.
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Let's find out Spot meaning, definition in crypto, what is Spot, and all other detailed facts.
A spot is a transaction where parties buy or sell cryptocurrency for its immediate price. Spot trading can also involve other assets, like stocks, bonds, or forex. It can occur on both centralized (CEX) and decentralized cryptocurrency exchange (DEX) platforms.
The physical delivery of the cash, commodity, or instrument is included in most spot contracts. The difference in price between a future contract and a spot contract takes into account the time value of the payment, which is dependent on interest rates and the time to maturity. Besides, the T+2 settlement date is used for most spot market transactions.