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Spot Transaction; Spot FX Transaction; Foreign Exchange; Exchange Risk
Spot transactions are purchases or sales of foreign currency for "immediate" delivery. In every exchange deal there are normally two key dates involved: (1) the "transaction date," on which the respective contract is concluded, and (2) the "value date" on which settlement, i.e., the actual delivery of funds, must take place. A spot foreign exchange transaction involves the purchase of one currency at an agreed price for delivery on the value date. The value date of a spot FX transaction is usually the trade date plus two working days.
Edited by Michael C. Dennis