Spot settlement and sale of foreign exchange is a foreign exchange transaction method in inter-bank transactions, which means that banks sell their foreign exchange to customers at spot value. This means that the traded foreign exchange will be actually delivered on the trading day or the next working day. Generally speaking, the foreign exchange transaction of spot settlement and sale of foreign exchange is done on the basis of the established foreign exchange rate. This transaction is a foreign exchange transaction in which both parties reach an agreement and the actual remittance date is within a short time of the transaction date. Spot trading of foreign exchange is a standard trading method and a basic trading method in the foreign exchange market.

Spot trading of foreign exchange is of great benefit to both banks and customers. Banks can use spot sales to realize the rapid flow of foreign exchange, so as to gain profits in the foreign exchange market, and at the same time, they can also use the sold foreign exchange to buy time deposits in other currencies. Customers can conveniently remit money and obtain foreign exchange through spot foreign exchange trading to meet their business and personal needs. At the same time, the spot settlement and sale of foreign exchange has also increased the liquidity and transparency of the foreign exchange market, thus improving the stability of the market.

Spot trading of foreign exchange also has its limitations. In some unstable market environment, spot settlement and sale of foreign exchange may be affected. In addition, the delivery period of spot settlement and sale of foreign exchange limits its flexibility and may affect the cost of participating in the transaction. Therefore, when choosing a foreign exchange trading method, we must consider the actual situation and our own needs in order to choose the most suitable trading method.