Spot transaction

Transactions that are arranged for execution ‘now’ are called spot transactions.
This means that the current market price is applied and the transaction is recorded at that spot price.

In the foreign exchange market a spot transaction is one which is transacted now, at today’s spot price, but which is normally delivered in two business days’ time.

See also

• Forward contract
• Forward market
• Forward rate agreement
• FX swap
• Spot market
• Spot rate
• Transaction