Spot Forex refers to plainly as foreign exchange based transactions executed for immediate delivery.
In the Forex market all trades in the spot market are actually settled at later times, but are executed right away and delivered to the traders account in real-time. On the spot foreign exchange market and unlike the stock or commodity markets no physical goods are actually delivered for example, when you choose to trade the EUR/USD for instance, you do not actually receive paper notes from your dealer. All trades are plainly processed as computer transactions between the trader and the bank, broker or dealer. Simply put a trade of buying 10,000 US Dollars for Euros does not necessitate the dealer to actually supply the physical currency to the trader, but requires the dealer to resolve the difference between the open rate market price and the current market price.
