What is Spot Trading?

Spot trading refers to the process of buying and selling assets without using leverage and stands in contrast to derivatives trading such as futures or options. Spot orders come in different varieties: limit orders allow one to set an order for a particular price (which an asset may or may not eventually reach), market orders allow one to buy an asset at its current market price, and other more complex order types are also available. Spot trading is considered much less risky than derivatives trading because it doesn't involve leverage and potential asset liquidations.