spot rate
spot rate definition - finance
The
price of a foreign currency that is the
current rate at which a currency is trading. It reflects what one
currency is worth in terms of another currency within two business days from
the trade date, which is the normal settlement period for a spot transaction.
In contrast to spot rates, there are forward
rates, which is what one currency is worth in terms of another at a
specified point in the future.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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