Spot Trade
Co-Founder•1 min read
A spot trade (or spot transaction) is the immediate exchange of one currency for another at the current market rate — known as the spot rate.
Settlement typically occurs within two business days (T+2), meaning the buyer pays and the seller delivers the currency almost immediately compared to forward or future-dated contracts.
Example:
A UK company buying USD to pay a supplier today agrees a GBP/USD spot trade at 1.25 — the payment and currency delivery settle within two working days.
Used in:
FX payments, international trade, treasury operations, and short-term currency conversions.