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HomeRight Arrow TerminologyRight Arrow Spot

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Spot

In trading, the term “spot” refers to the current market price of a financial instrument such as a currency, commodity, or security. It is the price at which the instrument can be bought or sold for immediate delivery or settlement, rather than at a future date. The spot price is affected by supply and demand factors in the market and can fluctuate frequently.

In the foreign exchange market, the term “spot” is also used to refer to the current exchange rate for a currency pair, which reflects the price at which the currencies can be bought or sold for immediate delivery.

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