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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › spot rate
hi
what is spot rate and what is the difference between spot rate and forward rate?
thanks
The spot rate is the exchange rate on a particular day. The forward rate is a rate quoted for conversion on a fixed future date, and is one of the ways examinable of removing the risk of foreign exchange rate movements.
You should watch my free lectures on this – I explain each of the various methods, with examples.
The lectures are a complete free course and cover everything needed to be able to pass the exam well.
thanks
You are welcome 🙂