A spot foreign exchange (FX) transaction is an agreement to exchange one currency for another at an agreed exchange rate, with physical delivery of both currencies occurring shortly after the trade date. In global FX markets, this delivery typically takes place two business days after the trade date (T+2), in line with standard market conventions.
The exchange rate applied to this transaction is known as the spot rate. It reflects current market pricing and is commonly referenced as “today’s FX rate”
How Spot Settlement Works
For most major currency pairs, spot FX transactions follow a T+2 settlement cycle:
Trade Date (T): The exchange rate and transaction details are agreed
Value Date (T+2): Both currencies are delivered and settled
Settlement timing may adjust if the value date falls on a public holiday or non‑business day in either of the currencies’ home markets, in which case settlement rolls to the next valid business day.
Some currency pairs follow different conventions (for example, certain North American pairs may settle earlier), but T+2 remains the global standard for spot FX
Why Use JetFX for Spot Deliverable FX?
JetFX’s deliverable FX spot execution is designed to support efficient, reliable currency settlement, providing clients with:
Transparent spot pricing
Access to deliverable currency markets
Standard market settlement conventions
Support for payment‑driven and trading‑driven FX requirements
Deliverable spot FX remains the foundation of global currency markets, enabling real‑world exchange of funds to support international commerce and financial flows.