Spot Rate

See: Spot. See: Spot Price.

The spot rate is the here-and-now price quoted if you bought the asset (commodity, currency, or security) right now. As in: now-now. Now. Yep, three different spot prices just happened.

Thanks to the technology we have today that allows superfast trading, the spot rate can bounce around like a bouncy football. It’s over here, then over there, then back over here.

The spot rate is also called the spot price. In currency markets, the spot rate or spot price is called the “benchmark rate” and the “outright rate.” All of these terms reflect the same thing: current market value for a thing, whether a currency, commodity, or security.

That value is affected by supply and demand. To see exchange rates in real-time, you can watch the spot rates for two currencies bouncing around. Catch it if you can.