What is the 'spot rate'? Definition & meaning

More terms

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.

Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.

Custodian bank

Learn what a custodian bank is.

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

Professional Client

An investor that is able to meet several regulatory criteria.

Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

OEIC

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

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Income statement

A summary of a company's income and expenses over a set period of time.

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Spot Rate