Glossary entry
Spot refers to trading for delivery or settlement according to the market's near-term standard convention, rather than a contract scheduled for a distant future date. It does not always mean instantaneous settlement. The convention varies by asset and currency pair, and a derivative referencing a spot price is not necessarily ownership of the spot asset.
Illustrative example
A currency spot trade agrees an exchange rate today with settlement on the pair's standard value date, rather than choosing a future date months away.
What to consider
Check delivery, custody, and settlement terms. Products described as rolling spot or spot-linked may include leverage and continuing financing arrangements.
General information, not a personal recommendation. Product availability, rights, and obligations are determined by the relevant provider, jurisdiction, and approved agreements.