Settlement (T+2)
The point at which both sides of a currency trade actually exchange funds. Most spot FX settles two business days after the trade date, written as T+2.
Related terms
Spot Rate
The current market exchange rate at which one currency can be bought or sold for immediate delivery. Spot trades typically settle two business days later (T+2).
Read full definitionBlockchain Settlement
Completing a transaction by recording the transfer of value on a blockchain. It can move funds in minutes, around the clock, rather than over the days that traditional rails sometimes take.
Read full definitionMore in FX
Forward Contract
An agreement to exchange a set amount of one currency for another at a fixed rate on a future date. It locks in today’s rate, protecting a business from adverse currency moves before a payment falls due.
Read full definitionFX Swap
The simultaneous purchase and sale of the same amount of a currency for two different value dates, typically a near leg at spot and a far leg forward. It is used to roll a hedge forward or manage short-term cash-flow timing.
Read full definitionCurrency Pair
Two currencies quoted against each other, such as GBP/USD. The first is the base currency and the second the quote currency; the price shows how much of the quote currency one unit of the base is worth.
Read full definitionBid-Ask Spread
The difference between the price at which the market will buy a currency (bid) and the price at which it will sell (ask). A tighter spread means lower transaction costs.
Read full definitionPip
The smallest standard increment by which a currency pair moves, usually the fourth decimal place (0.0001). Pips are the common unit for quoting spreads and price movements.
Read full definitionVirtual IBAN (VIBAN)
A unique IBAN issued on top of a master account, letting a business collect and reconcile payments in a customer’s or currency’s own name without opening a separate bank account for each one.
Read full definitionWant this applied to your business?
Our specialists turn FX concepts into a practical strategy.