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  • Spot Rates 114033

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    Biens III
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    Spot rates refer to the exchange rate for immediate currency delivery, with settlement occurring two business days later. Forward rates set the exchange rate today for a future transaction, most often 30, 90, or 180 days in the future. A forward premium exists when a currency's forward price is above its current spot price, while a forward discount occurs when the forward price is below the spot.

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    Spot rates refer to the exchange rate for immediate currency delivery, with settlement occurring two business days later. Forward rates set the exchange rate today for a future transaction, most often 30, 90, or 180 days in the future. A forward premium exists when a currency's forward price is above its current spot price, while a forward discount occurs when the forward price is below the spot.

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    © All Rights Reserved
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    5 views4 pages

    Spot Rates 114033

    Uploaded by

    Biens III
    Spot rates refer to the exchange rate for immediate currency delivery, with settlement occurring two business days later. Forward rates set the exchange rate today for a future transaction, most often 30, 90, or 180 days in the future. A forward premium exists when a currency's forward price is above its current spot price, while a forward discount occurs when the forward price is below the spot.

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    © All Rights Reserved
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    of 4

    SPOT RATES

    AND
    FORWARD RATES
    SPOT RATES
     The exchange rat e f or “immediat e”
    delivery of currency.
     The settlement or value data for a spot
    transaction occurs two business days
    after the deal is made.
     Spot market transaction
    FORWARD RATES
     The exchange rate agreed on today for a
    transaction at a future date.
     Most commonly quoted 30, 90, or 180
    days in the future.
     Forward market transaction
     A forward premium is when a currency’s
    forward price is higher than its current
    spot price.
     A forward discount exists when the
    currency’s forward price is lower than the
    spot price.

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