SPOT TRADE

Spot trade is also referred to as ‘cash trades’. It is the buy and sell of foreign currencies and commodities that is set for immediate delivery which are settled on the ‘spot’ or currently. Some transactions are settled on a set date in the future. These are aptly named as future transactions and these transactions may also be considered as a spot date if the settlement is within the bounds of ‘immediate’ settlement which is estimated up until one month.