The spot market or cash market is a public financial market, in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market in which delivery is due at a later date. A spot market can be:
Spot markets can operate wherever the infrastructure exists to conduct the transaction. The spot market for most instruments exists primarily on the Internet.
Security (i.e. financial instrument) or commodity is traded on an exchange using, making and possibly changing, the current market price.
In the over the counter market, trades are based on contracts made directly between two parties, and not subject to the rules of an exchange. The contract terms are agreed between the parties and may be non-standard. The price will probably not be published.
The spot foreign exchange market imposes a two-day delivery period, originally due to the time it would take to move cash from one bank to another. Most speculative retail forex trading is done as spot transactions on an online trading platform.