What is the spot market? | Investment Glossary

In simple terms, the spot market is the market where the investment instruments are traded at the market price with the principle of instant delivery. Now let’s look at the spot market in some more details…

The spot market is the market where a financial product is instantly bought or sold at the last price. In the spot market, the delivery of a financial asset takes place after a maximum of two business days (T+2) at the price determined on the transaction date. The Spot Market is also known as the ‘Cash Market’.

An investor can only use the assets he has when buying or selling in the spot markets, so there is no leverage.

As an example of spot markets, we can show you to trade stocks in the Borsa Istanbul stock market, to buy foreign currency from a bank or to buy gold from a jeweler.

Centralized exchanges are safe and compliant with legal regulations to make buying and selling easier; They receive commissions for transactions made. Decentralized exchanges also offer a similar service, through blockchain smart contracts.


Source: bigpara- GÜNDEM by bigpara.hurriyet.com.tr.

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