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 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.

Examples of FX Spot in a sentence

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.
However, you may request us, to enter into an FX Spot Transaction with you in the same Available Currencies, in an amount equal to and having the same Value Date as the first transaction but in the opposite direction.
You may not terminate an FX Spot Transaction (the “first transaction”) once we have accepted an Instruction from you to enter into an FX Spot Transaction with you.
The Margin requirements in respect of any FX Spot and CFD Margin Trade may fluctuate and you may incur losses from any FX Spot and CFD Margin Trade that exceed the Margin you have provided to us for your Positions.
You may only enter into or close FX Spot and CFD Margin Trades via our Platform and/or through our client support team during the Trading Hours specified in the Product Library for the relevant Product.
We will promptly confirm each FX Spot Transaction that we have entered into with you by sending to you an FX Confirmation by post.
A variety of Margin requirement will be applied to each FX Spot and CFD Margin Trade you place on the Platform which you are required to meet in order to place that FX Spot and CFD Margin Trade.
The rate of exchange shall be the mean value of the British Pound Sterling/US Dollar FX Spot Rate in London first published in the Financial Times on the day for determining such rates.
You may set a variety of risk management options in respect of a FX Spot and CFD Margin Trade at any time via the Platform.
This Schedule 1 sets out terms that apply specifically to investing in our FX Spot and CFD Margin Trades on an Account.

More Definitions of FX Spot

FX Spot means the market for Spot FX Transactions offered by EBS pursuant to the EBS Rules.

FX Spot is a FX Contract to: