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  1. Home
  2. /Glossary
  3. /Spot Trading
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trading

Spot Trading

Buying and selling assets for immediate delivery at current market prices.

Definition

Buying and selling assets for immediate delivery at current market prices. Unlike derivatives, spot trades involve actual ownership of the asset. Most beginner crypto trading is spot trading.

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Related Terms

Derivatives

Financial contracts whose value is based on an underlying asset.

Exchange

A marketplace where cryptocurrencies are bought and sold.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

Ask Price

The lowest price a seller is willing to accept for an asset.

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