3.1 Spot Deals

This topic describes the spot deal and forward deals.

When a foreign exchange deal is settled within spot days (usually two days) of entering into the deal, it is referred to as a Spot Deal.

While the spot deals settle on the spot date,

• Cash deals settle on the same day
• Tomorrow or TOMs settle on the next working day.

Forward deals

A foreign exchange deal settled beyond the spot days (of entering the deal) is referred to as a forward deal.

In this chapter, we discuss how you can define attributes specific to a Foreign Exchange (FX) deal as a product.