Spot Next

Spot Next
A term used in foreign-currency trading. "Spot next" denotes the delivery of purchased currency on a day after the spot date. Spot-next contracts come in many lengths, such as spot one week, which implies delivery of the currency one week following the trade date.

The price for spot-next deliveries is adjusted for the extra time period. For example, a currency that is bought on Tuesday will settle on Friday; therefore, the price of the trade is determined on Friday.

Investment dictionary. . 2012.

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