What is Spot Trading? A Simple Explanation

Spot trading is the most basic form of trading, where you buy or sell an asset (like crypto, stocks, or forex) at its current market price for immediate delivery. Unlike futures or CFDs, you own the actual asset once the trade is settled.

Spot trading visual

Key Features of Spot Trading

  • Instant Ownership — You buy the actual asset (e.g., Bitcoin, Apple stock, gold) and hold it in your account.
  • Simple & Transparent — No leverage, no expiry dates—just straightforward buying/selling.
  • Fast Settlement — Crypto: Instant (T+0), Stocks/Forex: Usually T+2.
  • Lower Risk — No leverage = no forced liquidations.
  • Trade 1000+ Markets — Crypto, Stocks, Forex, Commodities.

How Does Spot Trading Work? (Example)

Current Bitcoin price = $60,000
You buy 1 BTC (pay $60,000 + small fee).
If BTC rises to $65,000, you sell it and profit $5,000.
You can also hold long-term (unlike CFDs).

Spot Trading vs. CFD Trading

Feature Spot Trading CFD Trading
Ownership You own the asset No ownership (bet on price)
Leverage Usually none High leverage (e.g., 1:100)
Fees Low (just spread/commission) Spread + overnight fees
Best For Long-term investors, beginners Short-term traders, hedging

Why Spot Trade with Xonex Markets?

  • Low fees (0.1% or less per trade)
  • Fast execution (no slippage on liquid markets)
  • Secure storage (cold wallets for crypto, insured custody for stocks)
  • Staking rewards (earn interest on held assets)

Who Should Use Spot Trading?