Posted in Finance, Accounting and Economics Terms, Total Reads: 78
Definition: Spot Date
Spot Date, as the name says, it’s the date on which the transactions are carried out practically. It may also be termed as settlement date as on this particular day all the remaining settlement is done by transferring the funds immediately and completing the entire transaction. The transaction that happens on spot date is called as spot transaction which is opposite of the futures contract or forward contracts, in which the transactions are not carried out immediately instead they are carried out in future on a particular date.
According to the type of financial transactions, the spot date may vary, in case of foreign exchange market, the spot date for currency is two banking days / business days forward to the date on which the order is placed.
Here, Horizon is the first step, and it indicates the date on which the transaction was initiated for the first time.