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Spot Foreign Exchange
Benefits and features
- A binding obligation to buy or sell a certain amount of foreign currency at the current market rate
- Most commonly used by companies exposed to transactional risk
A spot contract is a binding obligation to buy or sell a certain amount of foreign currency at the current market rate, for settlement in two business days time.
All companies who have foreign currency exposure may use a spot deal. But they are most commonly used by companies exposed to transactional risk.
How do you enter into a spot deal?
You need to advise us of
- the amount
- both currencies involved and
- which currency you would like to buy or sell
How is the settlement done?
A spot deal will settle through the physical exchange of currencies two working days after the deal is struck. This value date reflects both the need to arrange the transfer of funds and, in most cases, the time difference between the currency centres involved, one or other of which may well be closed at the time of the trade.
Key facts
| Minimum deal size | No minimum |
| Maximum deal size | No maximum |
| Credit line | Not required |
| Currency pairs | A credit line is required for a swap |
| Availability | In any currency pair where there is a liquid forward market |
Find out more about Currency Options and Forward Exchange Contracts to protect against foreign exchange risk.
Visit us at:
Collyer Quay Branch, 21 Collyer Quay Level 2 HSBC Building Singapore 049320
Contact us
Visit our Commercial International Banking Centre
Phone: 1800 216 9008 (Singapore) (65) 6216 9008 (overseas)
8.30 am to 6.00 pm, Monday to Friday
