Spot rate

Spot Rate (1) The current exchange rate for trading a currency in the open market. The rate is expressed as the conversion of foreign into base currency. (2) The theoretical yield on a zero-coupon Treasury security.

Spot rate curve The graphical depiction of the relationship between the spot rates and maturity. Spot rate The theoretical yield on a zero-coupon Treasury security.

spot rate The rate of interest on a spot loan that accumulates interest to maturity. spot settlement Settlement of a trade almost immediately-within a number of trading days that is standardized for each market. spot trade A trade for spot settlement.

Spot Rate The rate (price per unit) for purchase or sale of a commodity or foreign exchange for immediate delivery. Spotting ...

Spot rate The theoretical on a zero-coupon Treasury . Spot rate curve The graphical depiction of -the relationship between the spot rates and maturity.

spot rate of exchange exchange rate for an immediate transaction. Effective Exchange Rate ...

Spot rate: In foreign exchange dealings this is the rate quoted for immediate delivery of a foreign currency. Français: Taux au comptant Español: Precio de entrega inmediata ...

Spot Rate The present conversion price of one currency into another, being the exchange rate for immediate delivery (ie. within two business days) of currencies to be exchanged.

spot rate The rate available in the spot market as opposed to forward rates. spot yield curve ...

Spot rate - Refers to the price at which a currency can be purchased or sold and then delivered within two business days, e.g., spot dollar. Spot price - The current market price.

spot rate / Kassakurs; Komptantkurs / cours au comptant / corso a pronti Also: spot price, spot, spot level. Rate of a currency or price of a security in a spot transaction . Opposite: forward rate .

Expected Spot Rate The exchange rate between two currencies that is anticipated to prevail in the spot market on a given future date.

Theoretical spot rate curve A curve derived from theoretical considerations as applied to the yields of actually traded Treasury debt securities, because there are no zero-coupon Treasury debt issues with a maturity greater than one year.

Analyzing future spot rates on the basis of a market-determined exchange rate (such as the current spot rate or forward rate). Market-based corporate governance system ...

Market-based forecasting Analyzing future spot rates on the basis of a market-determined exchange rate (such as the current spot rate or forward rate).

Spot rate The theoretical yield on a zero-coupon treasury security. Spot rate curve The graphical depiction of the relationship between the spot rates and maturity. Spot secondary Used in the context of general equities.

spot rate The theoretical yield on a zero-coupon Treasury. spot trading A type of trading that involves cash sales for immediate delivery. spousal IRA A traditional IRA or Roth IRA set up by a married person in the name of his...

Interest rate parity theorem Expression that the interest rate differential between two countries is equal to the difference between the forward foreign exchange rate and the spot rate.

Under perfect foresight, for example, the forward rate would exactly equal the spot rate that later prevails when the forward contract matures. Perfect substitute ...

When the forward rate is equal to the spot rate. Premium A forward exchange rate standing at a premium over today's rate means that the currency concerned is more expensive in the forward market than now. If the 1 month forward dollar rate is 1.

Forward trades in FX are usually expressed as a margin above (premium) or below (discount) the spot rate. To obtain the actual forward FX price, one adds the margin to the spot rate.

On the date of sale, December 1, 20X1, the spot rate for the pound was $1.75. Vigeland prepared financial statements at its year end on December 31, 20X1, at which time the spot rate for the pound was $1.90.

(1) The spread over an issuers spot rate curve, developed as a measure of the yield spread that can be used to convert dollar differences between theoretical value and market prices. (2) The cost of the implied call embedded in a M.B.S.

The rate quoted is the spot rate. For example, a dealer may agree on Tuesday to sell U.S. dollars and buy Japanese yen for current delivery. The contract is completed on Thursday, when funds are exchanged and delivery takes place.

Z-Spread - Zero Violatility Spread - The constant spread that will make the price of a security equal to the present value of its cash flows when added to the yield at each point on the spot rate Treasury curve where a cash flow is received .

Bootstrapping Creating a theoretical spot rate curve using one yield projection as the basis for the yield of the next maturity. Borrow To obtain or receive money on loan with the promise or understanding that it will be repaid.

Hedge Quality Measured by the r-square in a regression of spot rate changes on futures price changes. Hedge Ratio The ratio of derivatives contracts to the underlying risk exposure.

Theory that forward exchange rates are unbiased predictors of future spot rates. Unbiased predictor A theory that spot prices at some future date will be equal to today's forward rates.

Unbiased expectations hypothesis Theory that forward exchange rates are unbiased predictors of future spot rates. See Forward parity. Unbiased predictor A theory that spot prices at some future date will be equal to today's forward rates.

Forward-Rate Agreements (FRAs) Cash payments are made daily as the spot rate varies above or below an agreed-upon forward rate and can be hedged with Eurodollar futures.

A projection of future interest rates calculated from either the spot rates or the yield curve. Personal Finance Headlines SEARCH: ...

Forward rate A projection of future interest rates calculated from either spot rates or the yield curve. Forward rate agreement (FRA) Agreement to borrow or lend at a specified future date at an interest rate that is fixed today.

Forward Contract Purchase or sale of a specific quantity of a commodity, government security, foreign currency, or other financial instrument at the current or spot rate, with delivery and settlement at a specified future date.

International Fisher effect States that the interest rate differential between two countries should be an unbiased predictor of the future change in the spot rate.

See also: Market, Price, Trade, Interest, Value