Forex spot trading has historically been the most popular because it includes the most "underlying" physical commodity for futures and options markets. Forward and futures markets have historically had more volume than spot markets. Nonetheless, as automated trading got more prevalent and the number of forex brokers expanded, so did the volume of deals on forex spot markets. The spot market is frequently referenced while discussing the foreign exchange market. Firms that wish to hedge their exposure to foreign currency risk at a later date use forward and futures markets.
A completed transaction is referred to as a "spot transaction." It is a bilateral transaction in which one party transfers currency to the counterparty and the counterparty receives the same amount of currency at the agreed-upon exchange rate. Cash is used to settle a transaction after it has been completed. Despite the fact that the spot market is commonly referred to as a market that deals in the present (rather than the future), trades typically settle in two days.