Spot refers to goods that actually exist and can be traded immediately, such as gold, crude oil and stocks. The spot market usually corresponds to the futures market, and there is a close relationship between them. Spot market plays a vital role in the real economy of industrial chain, and it is also an important part of the operation of market economy. Investors can participate in the trading of stocks, gold and other commodities and securities through the spot market.
There are also some differences between futures and spot. Apart from the different trading methods, the most essential difference is that the futures market adopts the "option" trading mode, which reduces the risks existing in the trading and makes it more in line with the interests of investors. Relatively speaking, transactions in the spot market are more transparent, and traders need to bear all the risks themselves. In addition, investors in the futures market can conduct leveraged trading at the time of trading, but spot trading is not supported. These different characteristics make futures and spot markets have their own advantages and disadvantages, and investors need to choose their own trading methods according to their own needs and risk tolerance.