AI Hub 22 November 2023 What Is the Difference Between Forex Spot And Forward Settlement? The foreign exchange (Forex) market is the largest and most liquid financial market in the world. It offers investors the opportunity to speculate on changes in currency values and take advantage of fluctuations in exchange rates. The two main types of Forex transactions are spot and forward settlements. In this article, we will discuss the differences between spot and forward settlement, as well as how they are used by traders. Spot Settlement A spot settlement is a type of foreign exchange transaction that involves an immediate delivery of one currency for another at a pre-agreed rate. Spot transactions are typically settled within two business days, making them one of the fastest ways to move money internationally. The most common form of spot settlement is buying or selling a currency pair,...
