Cash-settled spot trading is a type of trading where securitized commodities are bought and sold at margins within the current market price, and the settlement is made in cash rather than the underlying asset. This type of trading is a convenient way to speculate and make profits on price movements without having to worry about the physical delivery of the underlying asset. They can be used for a variety of purposes, including price speculation and risk management. Advantages of Cash-settled spot trading include convenience, lower costs and flexibility.