Spot trading is an investment transaction in which the underlying investment is paid and delivered immediately. Investors frequently refer to the spot price, which is the current value of a spot deal. The purchase or sale of a foreign currency, financial instrument, or commodity for immediate delivery on a defined spot date is referred to as a spot trade, also known as a spot transaction. The actual delivery of the cash, commodity, or instrument is included in most spot contracts; the difference in price between a future or forward contract and a spot contract takes into account the time value of the payment, which is dependent on interest rates and the time to maturity. The spot exchange rate is used in