hin a two-day period, after which the buyer receives the asset and the seller gets the payment simultaneously.
2. Spot Price: It is the price at which an asset trades in a spot market. This price is arrived by market forces of demand and supply in the market. It will reflect the present worth of that asset at any given moment.
3. No Leverage: Spot trading is mainly executed in case of spot trading when the buy does not happen with any leverage. This means that all cash payments for the asset bought have to be carried out from the beginning itself. This is as against the derivatives trading wherein the traders operate a higher position using a margin lower than the amount required.
4. Types of Assets: Currencies in the foreign exchange market; commodities such as gold, oil, and natural gas; and stocks or…
