Cryptocurrency Q&A
What is the difference between EURUSD spot exchange rate and forward rate?
What is the difference between EURUSD spot exchange rate and forward rate?
Elena
Tue Jul 16 2024
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7 answers
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Could you elaborate on the key distinctions between the EURUSD spot exchange rate and the forward rate? I'm curious to understand how they differ in terms of their definition, calculation, and usage. Specifically, does the spot rate represent the current exchange rate for immediate delivery, while the forward rate reflects a rate agreed upon today for a future transaction? Additionally, how do factors like interest rate differentials and expected currency movements influence the forward rate? I'm looking for a concise yet comprehensive explanation of these differences.
7 answers
CryptoWizardry
Thu Jul 18 2024
The EURUSD spot exchange rate represents a transaction that occurs on the same day, with the rate quoted and exchanged instantaneously.
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HallyuHeroLegend
Thu Jul 18 2024
In contrast, the EURUSD forward rate is quoted on a given day but settles at a later, predetermined date.
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alexander_jackson_athlete
Thu Jul 18 2024
This forward rate allows parties to lock in an exchange rate for a future transaction, mitigating risks associated with currency fluctuations.
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DaeguDiva
Thu Jul 18 2024
On Friday, July 5th, the EURUSD spot rate underwent a slight increase.
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KimonoGlitter
Wed Jul 17 2024
Beginning from a value of 1.0810 in the previous trading session, the EURUSD spot rate advanced by 0.0028 points.
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