What is the 'spot rate'? Definition & meaning

More terms

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

Depository

We look at what is a depository and what role they play in keeping markets work.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

Custodian bank

Learn what a custodian bank is.

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

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Spot Rate