A spot exchange rate is the rate for exchanging currencies for settlement under the market's standard near-term timetable. A customer quote may differ from the market reference because of provider pricing, transaction size, timing, liquidity, and applicable fees.
Quick reference for Spot exchange rate
| Check | What it means for the transaction |
|---|---|
| Category | Business payments and foreign exchange |
| Record to keep | Keep the currency pair, quoted amount, rate source, quote time, fees, payment route and received amount when they apply. |
| Do not infer | A displayed rate is not automatically the rate applied to the payment, and it does not guarantee the Recipient amount. |
Spot exchange rate and nearby terms
- Foreign exchange rate: A foreign exchange rate states how much of one currency is exchanged for another.
- Forward exchange contract: A forward exchange contract is an agreement to exchange currencies at a set rate on a future date or during an agreed period.
