Spot transaction

A spot transaction is a two-day delivery transaction (except in the case of trades between
the US Dollar, Canadian Dollar, Turkish Lira and Russian Ruble, which settle the next business
day), as opposed to the futures contracts, which are usually three months.
This trade represents a “direct exchange” between two currencies, has the shortest time frame,
involves cash rather than a contract; and interest is not included in the agreed-upon
transaction. The data for this study come from the spot market. Spot transactions has
the second largest turnover by volume after Swap transactions among all FX transactions
in the Global FX market.