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Spot Forex
• The spot foreign exchange market has a 2 day
delivery date, originally due to the time it would
take to move cash from one bank to another.
Denoted by S(.) where S is the relationship between 2
currencies ,e.g. S(Rs/$)=Rs 48.10/$ means
1 dollar = Rs.48.10
(therefore market for purchase or sale of currencies for
immediate delivery is called the spot market)
Example:
Spread bid price of dollar at spot S(Rs./bid$)=35.7621 and the ask
price is S(Rs./Ask$)=35.8024
Therefore the spread is ?
Rs.0.0403
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