The spot market is where financial instruments, such as commodities, currencies, and securities, are traded for immediate delivery.

A transaction in the FX spot market is an agreement to trade one currency for another currency at the current exchange rate.

Spot transactions for most currencies are finalised in two business days. The major exception is the U.S. dollar versus the Canadian dollar, which settles on the next business day. The price is established on the trade date, but the settlement happens on the value date.