Hi I was just confused what’s the difference between nominal exchange rate and spot exchange rate… I’ve got a rough idea but I’m wondering if it’s right.
Nominal exchange rate-> $1.416/Eur…this becomes the spot exchange rate if the trade takes place today, and this is the rate that’s required to be delivered after 2 business days, however, after two business days the nominal exchange rate could change to something else (which would become the spot exchange rate for trades occuring on that day)
thanks a lot