Spot market vs Derivatives market

On the spot market, real goods such as commodities or stocks are traded. Delivery and payment happen immediately after the transaction has been concluded.

On the derivatives market, agreements on future trades are traded. Therefore the delivery and payment of the goods do not happen immediately after the transaction has been concluded.

That said, it becomes clear that one the derivatives market, one can trade “risks” (of losses) and “chances” (of profits) without actually owning the goods one intends to trade in the future. For example, one can sell a good on the derivatives market before buying it.