Spot Rate

Spot rate is today’s market price of one currency measured in terms of another, for example, the price of one US dollar in Swiss Francs. The spot rates of all currencies against the US dollar (USD) are basic ones, the rest are considered cross rates.
Some of the existing currencies are considered major; these include the US Dollar (USD), the Euro (EUR), the British Pound (GBP), the Swiss Franc (CHF) and the Japanese Yen (JPY).
When you ask dealers for a quote, for example EUR/USD, they will provide you with two different prices, e.g. 1.0643 – 1.0647. From the dealer’s perspective, the difference between the two numbers “buy” and “sell” is called spread. If you want to buy 1 Euro, you have to pay theoretically 1.0647 USD for it, but if you want to sell 1 Euro you are going to be paid 1.0643 by your dealer. In this case, the difference between “buy” and “sell” in the spread is 0.0004, or 4 pips. In fact, buying one currency is the action of selling another. Alternatively, selling one currency actually means that you are buying the other.