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BLOG_Guide to Spot Trading: How Spot Markets Work in Finance

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Created December 29, 2025

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Check out this video I made with revid.ai

https://www.revid.ai/view/how-spot-markets-work-KpnCZmaaOU2rqUCHJNzs

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Video Transcript

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What actually happens in a spot market? It’s where assets are bought and sold at the current market

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price, with immediate or near-immediate settlement. Spot trading gives you direct ownership

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of the underlying asset. They are driven by supply and demand and exist across

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stocks, crypto, forex, and commodities. Understanding how

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spot trading works — including settlement and liquidity — is the foundation for understanding

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price action. Check the caption for a closer look at how spot trading differs from derivatives.

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