OPENEUROPE

When an arrangement is agreed upon, it is known as a "spot deal." It is a mutual trade in which one side delivers the negotiated amount of the money to the second party and collects a defined amount of another currency at the decided currency rate. Since the arrangement has been locked, the settlement is in cash. Since the spot market is widely regarded as one that deals with trades in the present (rather than in the future), these deals usually take two days to process.

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