A foreign exchange spot transaction, also known as FX spot, is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date.
As of 2010, the average daily turnover of global FX spot transactions reached nearly US$1.5 trillion, counting 37.4% of all foreign exchange transactions.
[2] The standard settlement timeframe for foreign exchange spot transactions is T+2; i.e., two business days from the trade date.
[3] Majority of SME FX payments are made through Spot FX, partially because businesses aren't aware of alternatives.
[4] Common methods of executing a spot foreign exchange transaction include the following:[1]