Definition
A spot market trades an asset for delivery or settlement under the market’s current convention, using prices quoted for near-term exchange.
In market context
Spot does not always mean instantaneous because securities, currencies, commodities, and cryptoassets follow different settlement processes. A spot quote can also underlie a derivative without the customer receiving the referenced asset. Users should check ownership, custody, settlement, fees, and leverage rather than assuming that a product labeled spot provides direct and immediate possession under the applicable product and venue rules.
Source
Use the primary source for fuller regulatory or market context.
