What is spot trading?

Spot trading is the buying and selling of a financial asset, such as a cryptocurrency or stock, for immediate delivery or settlement. In other words, spot trading involves buying or selling an asset at its current market price, rather than at a future price or with a delayed settlement date.

Spot trading is typically done on a cryptocurrency exchange, where buyers and sellers can trade cryptocurrencies in real-time at the current market price. This allows traders to take advantage of short-term price movements, and to quickly enter or exit a position based on market conditions.

In spot trading, the buyer and seller agree on the price of the asset, as well as the quantity being traded. The transaction is settled immediately, with the buyer receiving the asset and the seller receiving the payment.

Spot trading is different from derivatives trading, such as futures or options, which involve contracts that specify a future price and settlement date for the asset. Spot trading is also different from margin trading, which allows traders to borrow funds to increase their buying power and potentially increase their profits, but also comes with higher risk.

Overall, spot trading is a common and straightforward way to buy and sell cryptocurrencies and other assets in real-time, based on the current market price.

The article does not constitute financial advice.

Start with crypto today

Sign up on NBX, a trusted Norwegian cryptocurrency exchange and custodian, and kickstart your crypto journey safely.
Crypto 101
Explore the most popular crypto terms and find answers to your questions.

How is bitcoin price determined?


What is Binance USD?


Is Bitcoin a scam?


What is Dollar Cost Averaging?


What is Litecoin?


What is a derivative?


How to mine Ethereum?


What is Avalanche?


What is an IEO?


Insights, Trends, Analysis

Unraveling the cryptocurrency industry revolution.

The Remarkable History of Dogecoin: From Meme to Global Crypto Sensation

The history of Dogecoin is a testament to the power of community, humor, and collective enthusiasm within the cryptocurrency space. What started as a playful meme coin has evolved into a global sensation, embraced by a vibrant community that continues to push the boundaries of what a cryptocurrency can achieve.
4 min

Everything You Need To Know About NFTs: A Comprehensive Guide

In recent years, the world of digital assets has undergone a revolutionary change with the emergence of Non-Fungible Tokens (NFTs). These unique tokens have captured the attention of artists, collectors, and investors alike.
10 min

A Decade of Cryptocurrency Exchanges: From Hacks to Innovation

Over the past 10 years, the cryptocurrency market has witnessed remarkable growth, accompanied by notable incidents, evolving trends, and continuous efforts to improve security and user experience. Though, many have taken steps to enhance user fund protection and comply with regulatory requirements.
7 min
Cookie Consent

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.