The spot market is a market for buying and selling currencies depending on their current trading price. That price is determined by supply and demand and is calculated using a variety of factors, including current interest rates, economic performance, sentiment toward current political situations (both domestic and international), and the perception of a currency's future performance against another currency.

The spot market is a financial market where financial instruments, such as commodities, currencies, and securities, are traded for immediate delivery and payment. Transactions in the spot market occur "on the spot," with buyers and sellers agreeing on a price and the exchange of assets happening typically within two business days. Prices in the spot market are determined by supply and demand dynamics, reflecting the current market value of the asset. This market contrasts with futures and options markets, where contracts are made for delivery at a future date. The spot market is essential for price discovery and liquidity, providing real-time data that traders, investors, and companies use to make informed decisions and manage risk.