> For the complete documentation index, see [llms.txt](https://candora.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://candora.gitbook.io/whitepaper/candora-exchange/spot-trading.md).

# Spot Trading

Asset Exchange and Immediate Settlement Market

Spot Trading is the standard asset-exchange environment within [Candora Exchange](/whitepaper/candora-exchange.md).

It enables participants to buy and sell supported assets through immediate trade execution and settlement, with ownership transitions recorded directly within Candora's financial-state infrastructure.

Unlike leveraged products, spot trading does not create synthetic exposure or margin obligations.

Participants exchange assets directly, and completed trades result in corresponding balance updates within [Vault](/whitepaper/candora-grid/vault.md).

The Spot Trading environment operates on the same underlying infrastructure that supports the broader Candora ecosystem, including [Orbit](/whitepaper/candora-grid/orbit.md) for execution, [Pulse](/whitepaper/candora-grid/pulse.md) for market-state synchronization, [Oracle](/whitepaper/candora-grid/oracle.md) for valuation, [Risk Engine](/whitepaper/candora-grid/risk-engine.md) for operational controls, [Vault](/whitepaper/candora-grid/vault.md) for settlement and custody, and [Connect](/whitepaper/candora-grid/connect.md) for participant access.

### Order Processing

Orders submitted through the Spot Trading environment enter Candora Grid through Connect, where requests undergo authentication, authorization, validation, and normalization before being converted into internal event structures.

Validated orders are routed to the appropriate instrument shard within Orbit, where they enter the execution pipeline and are processed according to the matching rules defined by the execution engine.

This architecture ensures that external interfaces remain isolated from execution infrastructure while preserving deterministic processing behavior and replay consistency throughout the system.

### Execution Model

Under normal operating conditions, spot markets operate using Orbit's continuous FIFO price-time priority matching framework.

Orders are matched whenever executable liquidity exists:

```
BestBid ≥ BestAsk
```

Matching priority is determined by price and submission sequence according to Orbit's published execution rules.

During predefined systemic stress conditions, Orbit may temporarily activate Adaptive Stabilization Mode.

When active, orders are processed through short deterministic execution intervals and cleared through a single-price matching process designed to preserve orderly market behavior during periods of exceptional volatility or liquidity disruption.

Adaptive Stabilization Mode remains part of the same execution engine and does not constitute a separate market, venue, or participant class.

Once activation conditions no longer apply, Orbit automatically returns to continuous FIFO price-time matching.

### Settlement and ownership transfer

When a trade is executed, Orbit generates immutable execution events that propagate through Candora Grid.

Vault consumes these execution events and records the resulting ownership transitions within its double-entry ledger framework.

Asset balances are updated as part of the platform's settlement process, ensuring that completed trades are reflected consistently across custody, accounting, and portfolio state.

Because settlement occurs within Candora's integrated ledger infrastructure, completed spot trades become immediately available for subsequent platform activity, including additional trading, transfers, collateral allocation where supported, and withdrawal requests subject to applicable platform controls.

All balance changes remain traceable through Vault's event-sourced accounting architecture, providing deterministic reconstruction, auditing, and replay capabilities.

### Market-state synchronization

Throughout the trading lifecycle, market activity is synchronized across the broader Candora infrastructure.

Orbit publishes execution events to Pulse, which updates market-state representations and distributes market data throughout the platform.

Oracle consumes market information to support valuation processes, while Risk Engine and [Cortex](/whitepaper/candora-grid/cortex.md) consume relevant telemetry for solvency monitoring, analytics, and system coordination.

This synchronized architecture ensures that execution state, market state, valuation state, and financial state remain aligned across the exchange environment.

### System role summary

The Spot Trading environment serves as:

* the primary asset-exchange market within Candora Exchange
* the immediate settlement trading venue
* the FIFO price-time execution marketplace
* the deterministic spot execution environment
* the asset ownership transfer mechanism
* the participant-facing interface for direct asset trading

All spot-market transactions ultimately rely on Orbit for execution, Vault for settlement, Pulse for market-state synchronization, Oracle for valuation, Risk Engine for operational controls, and Connect for participant access.

This makes Spot Trading the foundational trading market of Candora Exchange.