What a spot transaction represents
A spot transaction exchanges an asset for a quoted amount under the market's settlement rules. A purchase generally creates exposure to the asset itself, rather than a contract tied only to its future price. Establish what legal interest you receive, where the asset is held and whether delivery is possible. A balance displayed by a provider may involve custody arrangements with additional contractual conditions.
From quote to execution
The displayed last price is a record of a previous trade, not a promise for your next order. A market order seeks execution at available prices, while a limit order specifies an acceptable price and may remain unfilled. Thin liquidity can produce partial fills or a larger difference between expected and executed prices. Review order size, trading pair and the complete confirmation before accepting a transaction.
Measuring exposure and cost
For an unleveraged illustrative purchase of two units at 100 each, initial exposure is 200 before charges. A fall to 90 reduces their market value to 180, even when the number of units is unchanged. Include the spread, transaction charges and any transfer costs when estimating results. Using borrowed funds adds a separate repayment obligation and changes this straightforward risk calculation.
Settlement and availability
Before using any spot service, establish settlement timing, supported networks, withdrawal conditions and the party responsible for safekeeping. Sending an asset on an incompatible network can make recovery difficult or impossible. FYLU's information pages explain these concepts; this website does not execute orders or maintain funded trading accounts. Actual available pairs, provider terms and eligible regions require the operator's approved product documentation.