Spot Exchange Rate

Interest or loan rates that other rates are pegged to. An example is the U.S. prime rate on which other loan rates are based.

Previous:	Benchmark, Bellwether Security, Behavioralaccounting
Next:	Benchmarking, Benchmarking (best practices), Beneficiary

View more Business & Finance videos

The rate of a foreign-exchange contract for immediate delivery. Also known as "benchmark rates", "straightforward rates" or "outright rates", spot rates represent the price that a buyer expects to pay for a foreign currency in another currency.

Investopedia Says:
Though the spot exchange rate is said to be settled immediately, the globally accepted settlement cycle for foreign-exchange contracts is two days. Foreign-exchange contracts are therefore settled on the second day after the day the deal is made.

Related Links:
Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers. A Primer On The Forex Market
Charting is not the only way to analyze the foreign-exchange market. Learn how to apply fundamental analysis to the economic indicators. The Fundamentals Of Forex Fundamentals
Before entering this market, you should define what you need from your broker and from your strategy. Getting Started In Forex
In this online tutorial, beginners and experts alike can learn the ins and outs of the retail forex market. Forex Tutorial: The Forex Market
How do you use a back-to-back loan?