In foreign exchange (FX), the spot rate is the current exchange rate at which one currency can be immediately exchanged for another.

It is the rate quoted for an on-the-spot transaction, with settlement typically occurring two business days after the trade date for most currency pairs. The FX spot rate reflects real-time supply and demand in the currency market and continuously fluctuates as market conditions change. It is distinct from the forward rate, which is a rate agreed upon today for a currency exchange that will occur at a specified future date.

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For example suppose you want to exchange euros for U.S. dollars and the spot exchange rate for EUR/USD is 1.1550. This means you will receive $1.1550 for every €1 exchanged. If you purchase €10,000, you would pay $11,550 (10,000 x 1.1550). This immediate-rate transaction would be settled in two business days, which is the standard settlement period in the FX market.