How Does the Spot Market Work?

By Investment U Research Team The spot market isn’t any one single market. Instead, it refers to a selection of cash markets where asset exchange happens in real time. These markets are fast-paced, with buying and selling happening congruently. They’re active, liquid markets, with every buy, sell and trade determining the price of assets.
The most well-known spot market is the stock market. You can jump on any time during trading hours and exchange money for securities—or securities for money. The transaction happens immediately, in seconds. This is also why spot markets are commonly referred to as cash markets. They function the same way as …read more

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