some time in the future. It is the world's largest market, with over 5 trillion traded daily; its size dwarfs the interest rate and commodity markets. Contracts are most commonly between two financial institutions, but they can also be between a company and a financial institution. For example, a transaction executed via direct telephone communication or direct electronic dealing systems such as Reuters Conversational Dealing Electronic broking systems Executed via automated order matching system for foreign exchange dealers. For example, if a EUR/USD trade is executed.1550, this will be the rate at which the currencies are exchanged on the spot date. The Ask price is also known as the Offer. Spot trading has become more widespread in the past 10 years because of the ease in trading with electronic systems and internet-based trading systems. Breaking down spot, trade foreign exchange spot contracts are the most common and are usually for delivery in two business days, while most other financial instruments settle the next business day.
By ForexBrokers Filed Under, fAQ, leave a Comment, what. Generally, spot trades are settled within 2 days of the transaction. For example, in the" USD/CHF.4527/32, the base currency is USD, and the Ask price.4532, meaning you can buy one US dollar for.4532 Swiss francs. Examples of multibank systems include FXSpotStream LLC, Integral, FXall, HotSpotFX, Currenex, lmax Exchange, FX Connect, Prime Trade, Globalink, Seamless FX, and eSpeed Voice broker Executed via telephone with a foreign exchange voice broker See also edit References edit Retrieved from " p?titleForeign_exchange_ spot oldid ". Another major advantage of trading spot FX is the massive liquidity available to you compared to the futures market. The exception is the USD/CAD, which is settled within a day. The forex spot rate is the current exchange rate at which a currency pair can be bought or sold. The biggest difference between spot FX and currency futures is the settlement date.