A foreign exchange spot contract is one in which the trader commits to purchase or sell the currency at the current market price. A spot currency transaction might be going to a local bank and exchanging some British pounds for US dollars before traveling on vacation to the US. The currency exchange rate in force at the time is utilized. This concept may be applied to other markets as well, such as the commodities market. For example, one can buy gold "on spot," which means they pay the current market price and receive it instantly. The foreign exchange spot market is also known as the cash market, and spot currency pairings are referred to as "cash" on our trading platform. They will go into further detail about this issue in the subsequent portions of the essay.