An outright settles before, on or after the spot date
Table of Contents
1. Summary
An outright is a single exchange of currencies at an agreed rate on one future value date. The value date places it before spot, on spot or after spot.
2. Detail
- Before spot: value today or value tomorrow, where tomorrow is not the spot date.
- Spot: T+2 for most pairs and T+1 for pairs such as USD/CAD.
- Forward: any date after spot.
The line between spot and forward has regulatory weight. In the EU a contract delivered within the spot window is excluded from the financial instruments of MiFID II.
3. See also
- FX forwards — the structure note.
- FX Forward — completes: the third case as a product.
- FX spot date and settlement — completes: the date that separates the cases.
- The regulatory treatment of an FX forward turns on settlement and purpose — completes: what the case changes.