What is a Spot Trade?

A spot trade is the purchase or sale of a foreign currency, commodity or financial instrument for immediate settlement of payment and delivery on the spot date.

Spot trades are executed electronically around the world and are the most common type of contract used in the Forex markets.

Spot contracts are delivered immediately in comparison with a forward contract or futures contract, where the contract terms are agreed first, but delivery and payment will occur at a future agreed date.