1. What is Daily Spot Rate?

The Daily Spot Rate represents the current market price at which a particular asset can be bought or sold for immediate delivery. It's a crucial metric in foreign exchange and commodities markets.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Closing Price — Today's closing price of the asset
• Previous Day's Closing Price — The closing price from the previous trading day

Explanation: The spot rate shows the percentage change between today's closing price and the previous day's closing price.

3. Importance of Spot Rate Calculation

Details: Spot rates are essential for traders, investors, and financial analysts to understand market movements, calculate returns, and make informed trading decisions.

4. Using the Calculator

Tips: Enter both today's closing price and the previous day's closing price in USD. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between spot rate and forward rate?
A: Spot rate is for immediate settlement, while forward rate is for future settlement at a predetermined price.

Q2: How often do spot rates change?
A: In active markets, spot rates can change by the second during trading hours.

Q3: What factors affect spot rates?
A: Supply and demand, interest rates, economic indicators, political stability, and market speculation.

Q4: Can spot rates be negative?
A: While rare, some interest rate environments can produce negative spot rates.

Q5: How accurate are spot rate calculations?
A: The calculation is mathematically precise, but market conditions may cause rapid fluctuations.