Leverex exchanges are the best way to buy, sell, and trade cryptocurrency assets like BTC and ETH. As a crypto trader, you must be familiar with the concept of Spot Trading. But even if you are not, learning different crypto concepts and trading strategies is a lifelong process. That is why we have decided to help you familiarize yourself with the concept of Spot Trading.
A Spot Market is a market where you can trade assets with other traders in real-time. As the name suggests, transactions are settled immediately or "on the spot" as soon as the buying/selling order is filled. As a buyer, you can purchase an asset with fiat or another cryptocurrency from a seller. More often than not, the delivery of the is immediate. But sometimes, it also depends on the asset being traded.
Spot markets exist in different forms like third-party exchanges and over-the-counter (OTC) trades.Third-party exchanges act as an intermediary between buyers and sellers, whereas OTC trades occur between buyers and sellers without an intermediary.
A buyer enters the market with a specific buy price. This is the maximum amount they wish to spend to buy a particular asset. For example, trader A wants to buy 1000 USDT at $0.99 equivalent of BTC each.
Once trader A is matched with trader B looking to sell 1000 USDT at $0.99 equivalent of BTC each, the order is executed and filled immediately. Similarly, sellers can also enter the market with a specific ask or sell price.