Editing Foreign exchange spot

{{Short description|Financial agreement}}
{{Foreign Exchange}}
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 US$1.5 trillion, counting 37.4% of all foreign exchange transactions.<ref name="BISReport" />   FX spot transactions increased by 38% to US$2.0 trillion from April 2010 to April 2013.<ref name="BISReport2" />

== Settlement date ==

The standard settlement timeframe for foreign exchange spot transactions is [[T+2]]; i.e., two business days from the trade date. Notable exceptions are [[United States dollar|USD]]/[[Canadian dollar|CAD]], [[United States dollar|USD]]/[[Turkish lira|TRY]], [[United States dollar|USD]]/[[Philippine peso|PHP]], [[United States dollar|USD]]/[[Russian ruble|RUB]], and offshore [[United States dollar|USD]]/[[Kazakhstani tenge|KZT]] and offshore [[United States dollar|USD]]/[[Pakistani rupee|PKR]] [[currency pair]]s, which settle at T+1. [[United States dollar|USD]]/[[Colombian peso|COP]] settles T+0.
<ref>{{Cite web |url=https://www.hsbcnet.com/gbm/attachments/rise-of-the-rmb/currency-guide-2012.pdf?WT.ac=CIBM_gbm_pro_rmbrise_pbx01_On |title=Archived copy |access-date=2018-07-10 |archive-date=2017-03-13 |archive-url=https://web.archive.org/web/20170313145206/https://www.hsbcnet.com/gbm/attachments/rise-of-the-rmb/currency-guide-2012.pdf?WT.ac=CIBM_gbm_pro_rmbrise_pbx01_On |url-status=dead }}</ref> Majority of SME FX payments are made through Spot FX, partially because businesses aren't aware of alternatives.<ref name="MoneyTransferComparison" />

== Execution methods ==

Common methods of executing a spot foreign exchange transaction include the following:<ref name="BISReport" />

* ''Direct'' – Executed between two parties directly and not intermediated by a third party. For example, a transaction executed via direct telephone communication or direct electronic dealing systems such as [[Thomson Reuters|Reuters]] Conversational Dealing
* ''Electronic broking systems'' – Executed via automated [[order matching system]] for foreign exchange dealers. Examples of such systems are [[Electronic Broking Services|EBS]] and [[D2000-2|Reuters Matching 2000/2]]
* ''Electronic trading systems'' – Executed via a single-bank [[Proprietary software|proprietary]] platform or a multibank dealing system. These systems are generally geared towards customers. Examples of multibank systems include Fortex Technologies, Inc., 360TGTX, 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 ==
*[[Foreign exchange market]]
*[[Foreign exchange option]]
*[[Foreign exchange derivative]]
*[[Financial instruments]]
*[[Foreign exchange aggregator]]

==References==
{{Reflist|refs=
<ref name="BISReport">{{cite web|title=Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity in 2010|url=http://www.bis.org/publ/rpfxf10t.pdf|publisher=Bank for International Settlements|accessdate=17 September 2011}}</ref>
<ref name="BISReport2">{{cite web|title=Triennial Central Bank Survey Global foreign exchange market turnover in 2013|url=http://www.bis.org/publ/rpfx13fx.pdf|publisher=Bank for International Settlements|accessdate=30 September 2013}}</ref>
<ref name="MoneyTransferComparison">{{cite web|title=Spot FX transactions for Payments or Hedged Transaction?|url=https://moneytransfercomparison.com/spot-fx-transactions/|accessdate=14 December 2019}}</ref>
}}

{{DEFAULTSORT:Foreign Exchange Spot Trading}}
[[Category:Foreign exchange market]]

[[ru:Spot (сделка)]]