Understand what spot trading is
Spot trading is the method of buying and selling assets at the current market rate – called the spot price – with the intention of taking delivery of the underlying asset immediately. Spot market trading is popular among day traders, as they can open short-term positions with low spreads and no expiry date.
With us, you can trade the spot market, also called the cash or undated market, via derivatives such as CFDs. You don’t have to take ownership or delivery of the assets, and you’ll benefit from real-time, continuous pricing that reflects the underlying market. Plus, you can open a position using a deposit (margin), which increases your exposure to the market, potentially leading to magnified profits. However, this can also lead to amplified losses.
For example, if you think the price of silver is going to increase, you will buy the spot silver market (go long). If the silver price increased, you would make a profit, but if it decreased, you would make a loss.