Spot refers to the price to buy or sell a currency pair right away i.e. 'on the spot' (hence the term).
Spot contrasts with futures or forward prices which refer to the price of a currency pair at some specific date from now (at which time the obligation to deliver or take delivery of the specified amount of the currency pair must be fulfilled).
For currencies bought and sold Spot prices, delivery must occur either immediately or within a very short timeframe (e.g. within 24 hours - the rules depend on the venue where the transaction occurred).
Contributed by: Ralph Windsor
Spot contrasts with futures or forward prices which refer to the price of a currency pair at some specific date from now (at which time the obligation to deliver or take delivery of the specified amount of the currency pair must be fulfilled).
For currencies bought and sold Spot prices, delivery must occur either immediately or within a very short timeframe (e.g. within 24 hours - the rules depend on the venue where the transaction occurred).
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