Which date is used for settlement in a spot FX transaction?

Which date is used for settlement in a spot FX transaction?

• A. T+0
• B. T+3
• C. T+2
• D. T+1

Answer: (C)

In spot FX, settlement is two business days after the trade date. The trade date is marked as T, and the currencies are exchanged on the spot value date, which is T+2. This two-day window allows banks to process the cross-border payments, confirm the deal, and coordinate across different time zones. Keep in mind weekends and holidays can shift the actual calendar date, so a trade made on a Friday would settle on the following Tuesday in most cases.

In spot FX, settlement is two business days after the trade date. The trade date is marked as T, and the currencies are exchanged on the spot value date, which is T+2. This two-day window allows banks to process the cross-border payments, confirm the deal, and coordinate across different time zones. Keep in mind weekends and holidays can shift the actual calendar date, so a trade made on a Friday would settle on the following Tuesday in most cases.