A spot trade refers to the purchase or sale of a financial instrument, such as a currency, commodity, or security, for immediate delivery and payment on the spot or within a short period of time, usually two business days. Spot trading is the opposite of futures trading, where contracts for the underlying asset are bought or sold with a delivery date in the future. The price of a spot trade is determined by the current market price, based on supply and demand factors and other market conditions. Spot trading is commonly used in the foreign exchange market, where currencies are bought and sold for immediate delivery and settlement.