What is the spot rate? The price to swap currencies right now
By SendPay Business · · 2 min read
The spot rate is the exchange rate for swapping one currency for another now, rather than at a date in the future. It is the price quoted on currency markets at any given moment, and it changes all day long.
How spot settlement works
On the wholesale currency market, a spot trade is agreed at today's price but usually settles two business days later, known as T+2. Some pairs, such as the US dollar against the Canadian dollar, settle one business day later.
Spot, forward and mid-market
- Spot rate: the price to exchange now.
- Forward rate: a price agreed today for an exchange on a future date.
- Mid-market rate: the midpoint between the buy and sell prices on the market.
Why you are offered a different rate
Banks and money apps usually quote a rate with a margin added on top of the market price, plus any fixed fee. Comparing the rate you are offered with the mid-market rate shows how much that margin is.
Where SendPay fits
SendPay platforms include GBP, EUR and USD accounts and currency exchange under your own brand, powered by licensed partners, and you set your own platform fees. SendPay does not offer forward contracts or options.
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Build my platform →Questions people ask
When will my currency exchange settle?
Work out the value date with the free calculator.
Value date calculator →How does a forward rate compare with spot?
Work out a forward rate from the spot rate.
Forward exchange rate calculator →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.