Spot vs Forward: Which FX Tool Is Right for You?

A spot contract is an exchange at today's rate, with settlement typically within two working days. It's the right choice when you need funds delivered quickly.

A forward contract lets you fix today's rate but settle at a future date — anywhere from a few days to two years ahead. It's ideal when you know you'll need a currency in future and want to remove uncertainty.

Most clients use a combination of the two: spot for immediate needs and forwards to protect known future payments.