By foreign exchange market convention, spot foreign exchange transactions are to be exchanged at the...

By foreign exchange market convention, spot foreign exchange transactions are typically settled on a T+2 basis, meaning the transactions are exchanged at the spot date based on the two-day rule. This means that the delivery of the currencies involved in the transaction takes place two business days after the trade date. This standard settlement period is used to ensure that there is enough time to manage the administrative tasks associated with the transaction.