What is a spot contract?

Understand what a spot contract is in finance, how it involves the immediate purchase or sale of assets, and its role in trading.

What is a spot contract?
Mayank May-04-2023 04:00:34
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A spot contract is a contractual agreement between two parties that requires the immediate settlement or delivery of the underlying asset, usually within two business days. This type of contract is typically used for the purchase or sale of a currency before the settlement date or forward date of the respective currency. Spot contracts are often used for FX derivatives, commodities, and securities trading.
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Dominique
8 Ques 1 Ans
answered 22 Aug 2023

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