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Definition of 'Spot Exchange Rate'
The rate of a foreign-exchange contract for immediate delivery. Also known as "benchmark rates", "straightforward rates" or "outright rates", spot rates represent the price that a buyer expects to pay for a foreign currency in another currency.
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Investopedia explains 'Spot Exchange Rate'
Though the spot exchange rate is said to be settled immediately, the globally accepted settlement cycle for foreign-exchange contracts is two days. Foreign-exchange contracts are therefore settled on the second day after the day the deal is made.
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Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers.
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Charting is not the only way to analyze the foreign-exchange market. Learn how to apply fundamental analysis to the economic indicators.
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Before entering this market, you should define what you need from your broker and from your strategy.
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