Spot Rate

Dictionary Says

Definition of 'Spot Rate'

The price that is quoted for immediate settlement on a commodity, a security or a currency . Spot settlement is normally one or two business days from trade date.
Investopedia Says

Investopedia explains 'Spot Rate'

The spot price reflects market expectations of future price movements for a security or non-perishable commodity (e.g., gold).

Related Definitions

  • Spot Date

    The day when a spot transaction is typically settled, meaning when the funds involved in the transaction are transferred. The spot date is calculated from the horizon, which is the date ...
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  • Zero-Volatility Spread - Z-spread

    The constant spread that will make the price of a security equal to the present value of its cash flows when added to the yield at each point on the spot rate Treasury curve where a cash ...
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  • Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates. The most frequently reported yield curve compares the ...
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    • Term Structure Of Interest Rates

      A yield curve displaying the relationship between spot rates of zero-coupon securities and their term to maturity.
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    • Treasury STRIPS

      An acronym for 'separate trading of registered interest and principal securities'. Treasury STRIPS are fixed-income securities sold at a significant discount to face value and offer no ...
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    • Treasury Bond - T-Bond

      A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest payments semi-annually and the income that holders receive ...
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    • Present Value - PV

      The current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount ...
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    • Spot Premium

      The money an investor pays to a broker in order to purchase a single payment options trading (SPOT) option. With a SPOT option (also called a binary option) the investor chooses the ...
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