Lesson 2 · Practitioner · Both · 24 min
FX Spot, Forwards & FBIL References
How FX prices form, what spot vs forward means for customers, and how FBIL reference rates are used in India.
Objectives
- ▸Explain spot vs forward pricing intuitively
- ▸Describe bid/ask and how platforms monetize FX
- ▸Use FBIL reference rates correctly in product copy and contracts
- ▸Identify when a customer needs a hedge vs spot conversion
Spot FX is near-immediate exchange (commonly T+1/T+2 for many currency pairs; some corridors are same-day). The quoted rate includes a bid/ask spread—the primary monetization and risk buffer for market makers and many fintechs.
- Base / quote currency conventions matter for displaying ‘how many INR per USD’.
- Customer rate ≠ mid-market: disclose markup clearly.
- Intraday volatility can gap between quote and execution without a lock.
Key terms
SpotForwardBid/askFBILForward pointsMarkup