FX Spot definition

FX Spot is the purchase of one currency against the sale of another for immediate delivery. “FX Forward” and “FX Options” transactions are settled on an agreed date in the future at prices which are agreed on the date of the transaction. FX Forward trading involves an obligation to enter into the transaction at the agreed price on the settlement date. A purchaser of FX Options has a right to enter into a transaction in the underlying FX Spot currency pair on the expiry date if the price is more favourable than the market price at this time. On the other hand, a seller of options has an obligation to enter into a transaction with the purchaser on the settlement date if requested by the purchaser. Purchased options therefore involve a limited risk in the form of premium which is payable when the contract is made, while options that have been sold involve an unlimited risk in the form of changes to the price of the underlying FX Spot currency pair. NDFs are used for countries which have capital controls and do not allow their currencies to exit their countries. An NDF is traded on a forward-basis and is settled in USD at the official fixing rate which happens one (1) or two (2) days before the value date; after the fixing, there will be an exchange of USD which is equivalent to the profit and loss of the trade. The currency exchange market is the world's largest financial market with 24-hour trading on Business Days. It is characterized, among other things, by a relatively low profit margin compared to other products. A high profit is therefore subject to a large trading volume, which is achieved for instance by margin trading as described above. When trading in foreign exchange, a gain realised by one market player will always be offset by another player's loss. Foreign exchange transactions are always made with the custodian as counterparty; this implies that any position opened with the custodian can only be closed with the same custodian. Overall, Over the counter (“OTC”) transactions may involve greater risk compared to for example trading in securities like shares due to the fact that in OTC transactions there is no central counterparty and either party to the transaction bears certain credit risk and risk of default on the other party. Please note that as foreign exchange is margin traded, it allows you to take a larger position than you would otherwise be able to based on your funds with the custodian. As such, a relatively small negative or positive market m...
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FX Spot is a FX Contract to:
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FX Spot means a Transaction consisting in an exchange of two currencies at an agreed Exchange Rate which shall be cleared within two Working Days (T+2) after the entering into the Transaction.
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Examples of FX Spot in a sentence

  • The Clearing House builds for each Currency Pair an FX curve (zero coupon/market rate curve) using the FX Spot Rates, FX Swap Points and the USD LIBOR Curve.

  • OSFI Guideline E-22 ("OSFI E-22") does not define FX spot, but a separate OSFI advisory defines FX Spot as "the purchase of one currency for another, with immediate delivery according to local market convention (usually T+2BD)".

  • FX spot reference prices (“ FX Spot Reference Prices”), together, "Market Data".FX Spot Rates, FX Swap Points and FX Volatility are received by the Clearing House via a live link from all eligible FXCCMs during the Opening Hours (as defined in paragraph (b) of Section 1.2.2 (Service Operating Hours)).

  • FX Spot Rates and FX Swap Points are received by the Clearing House via a live link from all eligible FXCCMs (including FX FCMs) during the Opening Hours (as defined in Section 2.2.4(b)).

  • However, other costs and rights will apply to a FX Spot and CFD Margin Trade.

  • The Clearing House builds for each Currency Pair an FX curve (zero coupon/market rate curve) using the FX Spot Rates, FX Swap Points and the USD LIBOR Curve based on interpolation techniques agreed through the ForexClear Risk & Trading Working Group (a group comprising the Clearing House and FXCCM's risk and trading representatives) ("RTWG").

  • The FX ST is a Transaction the object of which consists in the purchase or sale of the Transaction Amount denominated in the Base Currency in exchange for the equivalent thereof denominated in the Non-Base Currency constituting a product of the Transaction Amount in the Base Currency and the FX Rate (” FX Spot Transaction/FX ST”).

  • Entering into the FX Spot shall occur upon the earlier of: agreeing on the Transaction Terms between the Customer and the Bank or the Bank’s acceptance for execution of the Customer’s Order.

  • Depending on the Value Date of the transaction they may be classified as FX Today (settlement in the same Banking Day as the Transaction Date), FX Tomorrow (settlement in the next Banking Day since the Transaction Date) FX Spot (settlement in two Banking Days after Transaction Date), FX Forward (settlement in more than two Banking Days after Transaction Date) and FX Swap Foreign Exchange.

  • FX Curve (Zero Coupon/Market Rate Curve): The Clearing House builds for each Currency Pair an FX curve (zero coupon/market rate curve) using the FX Spot Rates, FX Swap Points and the USD LIBOR Curve based on interpolation techniques agreed through the ForexClear Risk & Trading Working Group (a group comprising the Clearing House's and FXCCM's (including FX FCM) risk and trading representatives) (“RTWG”).


More Definitions of FX Spot

FX Spot is the purchase of one currency against the sale of another for immediate delivery. “FX Forward” and “FX Options” transactions are settled on an agreed date in the future at prices which are agreed on the date of the transaction. FX Forward trading involves an obligation to enter into the transaction at the agreed price on the settlement date. A purchaser of FX Options has a right to enter into a transaction in the underlying FX Spot currency pair on the expiry date if the price is more favourable than the market price at this time. On the other hand, a seller of options has an obligation to enter into a transaction with the purchaser on the settlement date if requested by the purchaser. Purchased options therefore involve a limited risk in the form of premium which is payable when the contract is made, while options that have been sold involve an unlimited risk in the form of changes to the price of the underlying FX Spot currency pair. NDFs are used for countries which have capital controls and do not allow their currencies to exittheir countries. An NDF is traded on a forward-basis and is settled in USD at the official fixing rate which happens one (1) or two (2) days before the value date; after the fixing, there will be an exchange of USD which is equivalent to the profit and loss of the trade.
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Related to FX Spot

  • FX Contract is any foreign exchange contract by and between Borrower and Bank under which Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency on a specified date.

  • Forward Contract means, for each Forward, the contract evidencing such Forward between the Company and the Forward Purchaser, which shall be comprised of the Master Forward Confirmation and the related “Supplemental Confirmation” (as defined in the Master Forward Confirmation) for such Forward.

  • Merchant means a person who is authorized under a written contract with an acquirer to honor or accept credit cards, or to transmit or process for payment credit card payments, for the purchase of goods or services or a charitable contribution.