What is Spot Rate?

Question

What is Spot Rate?

Accepted Answer

The **Spot Rate** is the current market price at which a currency, commodity, or security can be immediately bought or sold for settlement typically occurring within two business days (T+2), representing the most immediate valuation of an asset in the financial markets.

Spot Rate

What is Spot Rate?

What is the primary difference between a Spot Rate and a Forward Rate in foreign exchange markets?

How does the Spot Rate influence arbitrage opportunities and the principle of Interest Rate Parity?

How is the Spot Rate utilized in corporate hedging strategies to manage foreign exchange risk?

What key macroeconomic and market factors primarily determine the daily movement of the Spot Rate?

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