ABSTRACT
Spot transactions are initiated by a request to a bank to buy or sell a specified quantity of one currency in exchange for another. Banks deal directly with each other. One bank’s dealing room will telephone another to check a rate it is quoting, and perhaps to make a transaction. A large non-bank corporate might use any one of several banks with which it has regular FX dealings, in the expectation that the banks will try to offer keener prices to secure a transaction with the company. Smaller companies normally will approach the bank that handles all or most of their banking arrangements.
