Spot Next

DEFINITION of 'Spot Next'

A term used in foreign-currency trading. "Spot next" denotes the delivery of purchased currency on a day after the spot date. Spot-next contracts come in many lengths, such as spot one week, which implies delivery of the currency one week following the trade date.

BREAKING DOWN 'Spot Next'

The price for spot-next deliveries is adjusted for the extra time period. For example, a currency that is bought on Tuesday will settle on Friday; therefore, the price of the trade is determined on Friday.

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RELATED FAQS
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    Learn about the types of assets that have spot rates, and understand how the spot rate is used to determine the fair market ... Read Answer >>
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    Learn about spot and forward contracts, how spot and forward rates are used for spot and forward contracts, and the difference ... Read Answer >>
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  5. Why do futures' prices converge upon spot prices during the delivery month?

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