Accountancy Resources
A spot market is any market that deals in the current price of a financial instrument. Futures markets, such as the Chicago Board of Trade, offer commodity contracts whose delivery date may span several months into the future. Settlement of FOREX spot transactions usually occurs within two business days. There are also futures and forwards in FOREX, but the overwhelming majority of traders use the spot market. Thanks to the ability to automatically roll over from one trading session to the next, spot FOREX traders may hold a position for as long as they like.
In addition to spot, forward, and futures, options trading in FOREX has become very popular at the retail level.
You may also participate in the spot market with spread betting. These all have both advantages and disadvantages, which is discussed in Five FOREX Markets.
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