MANAGEMENT

Detailed explanation-1: -The rate of exchange effective for the spot transaction is known as the spot rate and the market for such transactions is known as the spot market. This requires the immediate delivery or exchange of currencies on the spot i.e. within 48 hours.

Detailed explanation-2: -The spot exchange rate is the current amount one currency will trade for another currency at a specific point in time. It is the open market price that a trader will pay to buy another currency.

Detailed explanation-3: -A spot exchange rate is the current price at which a person could exchange one currency for another, for delivery on the earliest possible value date. Cash delivery for spot currency transactions is usually the standard settlement date of two business days after the transaction date (T+2).

Detailed explanation-4: -Foreign exchange trading-also commonly called forex trading or FX-is the global market for exchanging foreign currencies.