Spot - A spot transaction
is a two-day delivery transaction
(except in the case of trades between
the US
Dollar, Canadian Dollar, Turkish Lira, Euro and Russian Ruble, which settle the
next business day), as opposed to the futures
contracts, which are usually three months. This trade represents a “direct
exchange” between two currencies, has the shortest time frame, involves cash
rather than a contract, and interest is not included in the agreed-upon
transaction. Spot trading is one of the most common types of Forex Trading.
Often, a forex broker will charge a small fee to the client to roll-over the
expiring transaction into a new identical transaction for a continuum of the
trade. This roll-over fee is known as the "Swap" fee.
(except in the case of trades between
the US Dollar, Canadian Dollar, Turkish Lira, Euro and Russian Ruble, which settle the next business day), as opposed to the futures contracts, which are usually three months. This trade represents a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract, and interest is not included in the agreed-upon transaction. Spot trading is one of the most common types of Forex Trading. Often, a forex broker will charge a small fee to the client to roll-over the expiring transaction into a new identical transaction for a continuum of the trade. This roll-over fee is known as the "Swap" fee.