Spot FX
Spot FX is the purchase of one currency for another, with delivery usually two business days later, at a price agreed on the trade date.
Explanation
That is the Basel Committee's glossary definition in its 2013 guidance on FX settlement risk. The same glossary distinguishes a spot trade from an FX forward, which settles on a later date, and from an FX swap, which is a spot or near leg plus a later reverse leg with the same counterparty. A retail rolling-spot contract is a different legal product. The FCA treats a leveraged rolling spot forex contract as a restricted speculative investment, alongside leveraged CFDs and spread bets, when it is a financial instrument. The word spot on a retail ticket does not by itself mean the Basel settlement timetable applies to that ticket.
This page explains published terms for education and reference. It is not financial, investment, tax, or trading advice, and it does not recommend a firm, product, or strategy.
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Sources and last check
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