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A spot FX trade would traditionally follow which of the following settlement conventions?
Suggested Answer: C
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31 comments · newest first
EU
Eun
10 months ago
Yeah, A is the standard for spot FX.
GI
Gilma
10 months ago
I thought it was T + 1 day? Seems off.
AV
Avery
11 months ago
Spot FX trades settle on the same day, right?
KA
Kaitlyn
11 months ago
Definitely A, it's always been same day!
DA
Dan
11 months ago
Wait, same day? That sounds too quick!
AD
Adela
11 months ago
I feel like it’s T + 2 days, but I also recall some discussions about variations in different markets.
SA
Samira
11 months ago
I’m a bit confused; I thought spot trades were same day, but I might be mixing it up with something else.
JE
Jesus
12 months ago
I remember practicing a question about FX settlements, and I think it was T + 1 day for spot trades.
LA
Lashawnda
1 year ago
I think spot FX trades settle on T + 2 days, but I’m not completely sure.
MA
Mariko
1 year ago
This is a straightforward question. Spot FX trades always settle on the same day as the trade date, so the answer is A. No need to overthink it.
CA
Carey
1 year ago
I'm a bit confused on the settlement conventions for different FX products. Let me quickly review my notes to make sure I select the right answer here.
TE
Tess
1 year ago
Ah, I remember learning about this in my FX trading class. Spot FX trades typically settle on the second business day after the trade date, so the correct answer is T+2, option C.
OR
Ora
1 year ago
Hmm, I'm a bit unsure about this one. I know spot FX trades have a shorter settlement period than futures or forwards, but I can't remember if it's T+1 or T+2. I'll have to think this through carefully.
VE
Venita
1 year ago
I'm pretty sure a spot FX trade follows the T+2 settlement convention, so I'll go with option C.
LO
Louvenia
1 year ago
Haha, I bet the exam writer tried to trick us with those other options. T + 2 days is the only way to fly when it comes to spot FX.
ES
Estrella
1 year ago
It's good to be cautious, especially when it comes to financial transactions like these.
BU
Buck
1 year ago
I always make sure to double check the settlement date before finalizing a spot FX trade.
ER
Erick
1 year ago
Definitely, it's important to know the correct settlement convention to avoid any confusion.
WI
Wilford
1 year ago
I agree, T + 2 days is the standard settlement convention for spot FX trades.
DO
Doretha
1 year ago
I believe it's actually A) Same day, as some trades can be settled on the same day.
FI
Fidelia
1 year ago
Yeah, C is the correct answer. T + 2 days is the way to go. Anything faster and I'd be worried about the trade not settling properly.
CO
Coral
1 year ago
T + 2 days gives enough time for everything to settle smoothly.
LU
Luis
1 year ago
I always prefer T + 2 days for spot FX trades.
EL
Elza
1 year ago
I agree, C is the safest option for settlement.
CA
Carylon
1 year ago
I'm not sure, but I think it might be B) T + 1 day.
BA
Barrett
1 year ago
I agree with Gail, because that's the standard settlement convention for spot FX trades.
GA
Gail
1 year ago
I think the answer is C) T + 2 days.
RO
Royal
2 years ago
I think it's got to be T + 2 days. That's the standard settlement convention for spot FX trades, right?
LA
Laura
1 year ago
C) T + 2 days
AR
Aron
1 year ago
B) T + 1 day
LU
Luis
1 year ago
A) Same day