In finance, the spot date of a transaction is the normal settlement day when the transaction is done today. This kind of transaction is referred to as a spot transaction or simply spot.
The spot date may be different for different types of financial transactions. In the foreign exchange market, spot is normally two banking days forward for the currency pair traded. A transaction which has settlement after the spot date is called a forward or a forward contract.
Other settlement dates are also possible. Standard settlement dates are calculated from the spot date. For example, a one month foreign exchange forward settles one month after the spot date. I.e., if today is 1 February, the spot date is 3 February and the one month date is 3 March (assuming these dates are all business days). For a trade with two dates, such as a foreign exchange swap, the first date is usually taken as the spot date.
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Famous quotes containing the words spot and/or date:
“It is those who can spot opportunities who are truly exceptional.”
—Chinese proverb.
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—Mark Twain [Samuel Langhorne Clemens] (1835–1910)