FX Risk Hedging

FX Spot

Spot currency conversion, i.e., the sale of one currency for another at an agreed exchange rate.

A term currency conversion, i.e., the sale of one currency for another at an agreed exchange rate in the future.

A combination of spot and term currency conversion, i.e., the sale of one currency for another and a re-purchase in the future.

The right to convert one currency into another at a set rate at a set date or time-period in the future.