Spot Transactions

Foreign Exchange Products – Spot Transactions

A spot transactions is the most common type of foreign exchange transaction.  A spot transaction is a contract between a party delivering a specified amount of currency and receiving a specified amount from another counter party.  The transaction is based on an agreed upon exchange rate is and settled in one or two business days.  With Knightsbridge, a rate can be locked in and executed in minutes.

Advantages:

1. Better than bank foreign exchange rates
2. Trade executed in minutes through a dedicated account representative that manages your account
3. Settlement available through international wire transfer, cheque, or bank draft
4. No need to change your existing banking relationship

Example
Bob’s Furniture Company, an importer, needs to pay his supplier in the U.S.  Bob’s Furniture Company calls Knightsbridge, obtains a live foreign exchange rate, and accepts the rate.  Bob’s Furniture Company then provides Knightsbridge with the funds in equivalent Canadian dollars, which are converted to the agreed upon U.S. amount and immediately forwarded to the supplier.  Settlement can be made by wire transfer, certified/draft cheque exchange, or direct debit within 1 or 2 business days.