Understanding the Spot Exchange Rate in Forex
The spot exchange rate is the price you can trade one currency for another right now. It applies to trades that are completed quickly, usually within two business days. This rate is very important because it shows the current value of one currency compared to another and changes often based on what’s happening in the world.
For example, if the spot exchange rate between the US dollar and the Euro is 1.20, it means you can swap one Euro for 1.20 US dollars today. These rates are easy to find and constantly updated because they reflect the most recent transactions in the Forex market, which operates around the clock from Monday to Friday.
