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Trends & Analysis
News

US dollar surges after Fed cuts rate by 50 bps

News

Will small caps shine after the Fed cuts rates?

News

Gold price hinges on the Fed meeting decision

News

Crude oil surges ahead of US Fed announcement

News

EUR/USD surges following economic data

News

Could we see a huge USD move this week?

Trends & Analysis
News

US dollar surges after Fed cuts rate by 50 bps

News

Will small caps shine after the Fed cuts rates?

News

Gold price hinges on the Fed meeting decision

News

Crude oil surges ahead of US Fed announcement

News

EUR/USD surges following economic data

News

Could we see a huge USD move this week?

Spot definition

Spot trading refers to trades executed ‘on the spot’ – that is for cash between two participants. The term is mainly used to refer to the spot FX market, where currencies are exchanged for one another directly. Cash equities refers to a similar market for equity products, and excludes, like spot forex, all derivatives.

 

On the spot

The spot market is not limited to forex but has equivalents in a range of commodity and energy markets. Whatever the traded asset, the basic difference is that spot trades are executed instantaneously, in practice with a T+2 settlement. They are contrasted to forward or futures trades, which are settled on a given date in the future.

 

Cash equities

A similar term is cash equities, which refers to stock trades executed for cash and immediate settlement, again contrasted with derivatives. In both spot and cash equities trading, fees are minimal and markets typically liquid. On the other hand, spot transactions offer no customizability and must be executed at the prevailing market price. For more illiquid stocks or currencies, spot transactions may impact the market price of the asset, resulting in unfavourable moves.

 

Start trading with ADSS

ADSS offers a range of global markets for traders, with CFD opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

 

See all glossary trading terms


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Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.