Spot Exchange Rate

What Does Spot Exchange Rate Mean?
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.

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.

Filed Under: Forex

Related Terms

Currency
Currency Forward
Earning The Points
Exchange Rate
Foreign Exchange Risk
Forex - FX
Forward Discount
London Spot Fix
Losing The Points
Spot Exchange Rate
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