Spot transactions generally refer to spot foreign exchange transactions, which refer to the form of foreign exchange transactions that are delivered on the same day or the next business day after the buyer and seller conclude a transaction in the foreign exchange market. It is the most common form of foreign exchange in the international foreign exchange market. A form of transaction whose basic function is to complete the exchange of currencies.

The role of spot trading is to meet temporary payment needs and realize the international transfer of currency purchasing power; to adjust the position ratio of multiple foreign exchanges through spot foreign exchange transactions and maintain a balanced foreign exchange position to avoid the risk of economic fluctuations; Use the combination of spot foreign exchange transactions and forward transactions to conduct foreign exchange speculation and seek speculative profits.

Extended information:

According to different delivery methods, spot transactions can be divided into three types.

1. Wire transfer. A remittance method in which the remitter directly notifies the remittance bank abroad by telegram or telex of his application and entrusts it to pay a certain amount to the payee. The wire transfer delivery method is to use telegrams or telexes to notify the banks (or entrusting banks) of the foreign exchange buyers and sellers to collect and record the transaction amount. The proof of wire transfer is the telegram or telex remittance authorization letter from the remitting bank or trading center.

2. Bill exchange. At the request of the remitter, the remittance bank will issue a draft with the foreign remittance bank as the payee, and the remitter will send it to the payee or carry it to the payee in person, and the draft will be withdrawn from the paying bank. Draft settlement refers to the remittance and collection of accounts through the issuance of drafts, cashier's checks, and checks. These notes serve as evidence of the bill of exchange.

3. Xinhui. At the request of the remitter, the remittance bank directly notifies the overseas remittance bank by letter to entrust it to pay a certain amount to the payee. The letter delivery method refers to the use of letters to notify the account opening bank or entrusting bank of the foreign exchange buyer and seller to collect and pay the transaction amount for accounting. The voucher for Xinhui is the Xinhui payment authorization letter from the remittance bank or trading center.

Baidu Encyclopedia-Spot Trading