Spot foreign exchange transactions refer to foreign exchange transactions in which foreign exchange is delivered within two working days after the end of the transaction. In this transaction, the two parties reach a transaction at the current market exchange rate, and pay and deliver foreign exchange within two working days after the transaction.

The quotation of spot foreign exchange transactions usually adopts bidding method. The bid price is the price at which traders are willing to buy a certain currency, and the selling price is the price at which traders are willing to sell a certain currency. The difference between these two prices is called the price difference, which is usually expressed by the fourth or fifth place after the decimal point.

For example, suppose the spot exchange rate of USD/EUR in the current market is as follows:

Bid price: 0.845 1

Asking price: 0.8453.

Price difference): 0.0002

In this example, if the trader wants to buy 10000 euros, then he needs to pay 845 1 USD; If the trader wants to sell 10000 euros, he can get $8453.

It should be noted that the quotation of spot foreign exchange transactions may be affected by many factors, such as the relationship between market supply and demand, the release of economic data, changes in monetary policy and so on. Therefore, the quotation of spot foreign exchange transactions is usually in a state of constant fluctuation. Traders need to pay close attention to market dynamics when conducting spot foreign exchange transactions, so as to trade at the right time.