Spot Rate

The spot rate is the current price or rate at which a currency, commodity, or security can be bought or sold for immediate delivery. It's like the "going rate" right now, reflecting the current market conditions. For example, if you're exchanging US dollars for euros today, the spot rate is the rate at which that exchange happens instantly. It is different from future or expected rates, which depend on predictions about future market movements. In finance and trading, understanding the spot rate helps investors and businesses make informed decisions about transactions happening immediately.