Fx Spot
The fx spot market accounts for the majority of daily turnover and is the most basic fx trading product. in essence, currencies, securities and commodities are traded for immediate delivery, in contrast to the futures market where delivery is scheduled for a date in the future. A foreign exchange spot transaction, also known as fx spot, is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date. the exchange rate at which the transaction is done is called the spot exchange rate. as of 2010, the average daily turnover of global fx spot transactions reached nearly 1. 5 trillion usd, counting 37. 4% of all foreign exchange transactions. The term “spot” in relation to an fx transaction means “on the spot. ” colloquially, the term means having to come up with something straight away. but in fx markets, “on the spot” means “on the fx spot settlement date. ” this means traders do not need enough currency to sett...