spot vs forward exchange rate
The spot and forward rates are each used in currency exchanges. The spot rate refers to the rate for a currency exchange that is settled and delivered immediately. A forward rate is the rate accepted between two parties when a currency exchange will be settled at a date in the future.he spot rate refers to the rate for a currency exchange that is settled and delivered immediately. A forward rate is the rate accepted between two parties when a currency exchange will be settled at a date in the future.