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Spot Transaction

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Spot transaction
A foregin exchange transaction in which each party promises to pay a certain amount of currency to the other on the same day or within one or two days.

Spot Transaction
Any transaction that does not occur in the futures or forward market. That is, the participants in a spot transaction agree to buy and sell, respectively, at the present market value and to settle the transaction a few days (usually one, two, or three) later. The term is most common in the foreign exchange market.


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In the Forex market there are so many things you have to process at one go; market psychology, price feeds, exchange rates, pips, outright forwards, swaps, spot transactions etc - the list just goes on and on and on.
Buyers then negotiate with potential sellers concerning product specifications and prices, and perhaps conclude a spot transaction or form a long-term contract.
According to the note, Saudi Arabia was aggressive in terms of issuance of Treasury-bills and Kuwait recently said that it would stop supporting local banks on spot transactions for non-commercial transactions.
 
 
 
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