A spot transaction ( Leverage )

A spot transaction is a straightforward exchange of one currency for another.The spot rate is the current market price, which is also called the �benchmarkprice�. Spot transactions do not require immediate settlement, or payment�on the spot�. The settlement date, or �value date� is the second businessday after the �deal date� (or �trade date�) on which the transaction is agreedby the trader and market maker. The two-day period provides time to confirmthe agreement and to arrange the clearing and necessary debiting andcrediting of bank accounts in various international locations.

Share
|