Financial Glossary: Spot Trade


en			ru			jp

Spot Trade

Spot Trade

The purchase or sale of a foreign Currency or commodity for immediate Delivery.

Spot trades are settled "on the Spot", as opposed to at a set date in the Future. It is also called "Cash trades".

Futures transactions that expire in the current month are also known as Spot trades because in the case that goods are actually delivered, Delivery time is reasonably expected to take one month.

It is the opposite of futures contracts, that usually expire well before any physical Delivery. Foreign-Exchange contracts are the most common kinds of Spot trades. If these kinds of contracts are not settled immediately, traders would expect to be compensated for the Time value of their money for the duration of the Delivery. Because these contracts are settled electronically, the forex market is essentially instantaneous.

Posted by Institute for International Research

Back

Privatebanking.com

Get the attention you always wanted and promote your corporate image and standing by benefiting from our state of the art interactive web presence.

Ascent Limited

Experience The Difference. Ascent Limited provides first class wealth management and family office services. Our private banking team, assembled from a group of highly experienced banking professionals, will provide financial advice tailored to your individual requirements and keep your portfolio in tune with the latest market developments and opportunities.

©	Copyright by PRIVATE BANKING.COM 2002- - All rights reserved.