Spot foreign exchange market refers to the foreign exchange market engaged in spot foreign exchange trading, also known as spot exchange market. Spot foreign exchange market is the most economical and common form in foreign exchange market. The spot foreign exchange market in the world carries out a large number of transactions every day, and the number of transactions is also the largest in the world. This market has huge capacity, active trading, easy quotation and easy to capture the market situation, which is the main form of foreign exchange market.
Spot foreign exchange market is a highly specialized market, which is composed of banks and foreign exchange brokers. Companies and individuals can only trade spot foreign exchange through banks as customers of banks. They cannot become direct members of the market.
The core members of the spot foreign exchange market are foreign exchange banks, the intermediary agencies are foreign exchange brokers, and the auxiliary members are companies, individuals and the central bank. The foreign exchange bank shall, at any time, provide the banks, companies, individuals and the central bank with the exchange rates of various currencies and promise to conclude business with the latter at such rates. In the spot foreign exchange market, the institution that provides the exchange rate is called "price maker", and the act of the offeror providing the real-time exchange rate to all members of the market at any time is called "maintain a market", In the foreign exchange market, other foreign exchange banks, foreign exchange brokers, enterprises, individuals and the central bank that ask for the price from the offeror and make transactions with the offeror on the exchange rate provided by the offeror are called price hitter.