Spot traders try to make profits in the market by purchasing assets and hoping they’ll rise in value. They can sell their assets later on the spot market for a profit when the price increases.
The current market price of an asset is known as the spot price. Using a market order on an exchange, you can purchase or sell your holdings immediately at the best available spot price. However, there’s no guarantee that the market price won't change while your order executes. There also might not be enough volume to satisfy your order at the price you wanted. For example, if your order is for 10 ETH at the spot price, but only 3 are on offer, you will have to fill the rest of your order with ETH at a different price.
Spot prices update in real-time and change as orders match. Over-the-counter spot trading works differently. You can secure a fixed amount and price directly from another party without an order book
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Depending on the asset, delivery is immediate or typically within T+2 days. T+2 is the trade date plus two business days. Traditionally, shares and equities required the transfer of physical certificates. The foreign exchange market also previously transferred currencies via physical cash, wire, or deposit. Now with digitized systems, delivery takes place almost immediately. Crypto markets, however, operate 24/7 allowing for usually instant trades. Peer-to-Peer trading or OTC can however take longer for delivery.
Citation: Binance Academy
Traders of todays are well aware of derivative trading features as well as the advantages of using these trading features in the Exchange. Till date, the craze for Cryptocurrencies are keep on raising. The traders of crypto market are looking for such kind of features in the exchange. By joining hands with Cryptocurrency Exchange Development Company like Bitdeal, you can instantly start a exchange business with versatile derivative features like spot, futures, etc,
