MiFID | Spot Currency DealingSpot Currency Dealing“Spot currency deal” means a purchase or sale of certain amount of one currency for another currency at an agreed exchange rate, whereby the due date is at the latest two working days after the date of signing the agreement. A client may wish to realize a spot currency deal in the case of a need to converse cash funds for a payment abroad, collection of funds from abroad, or transaction between client´s accounts kept in various currencies. The minimum volume of the deal is EUR 25,000, or an equivalent in foreign currency. The deals are settled in two working days after the date of closing the trade (T+2). When the client is interested, the settlement may be made on the date of closing the trade (T+0), or on the following working day (T+1). Implementation of spot currency dealing is subject to signing of the Framework Agreement on Conditions of Currency Trading. Advantages:
Example: An exporter having its seat in Slovakia collected USD 2 mil. based on an issued invoice for exporting goods. In several days, his commitments in EUR will become mature; therefore, he decides to convert USD into EUR. By phone he contacts the dealing department of the bank to find out the current exchange rate of EUR/USD. Let´s suppose the following bid quote of the bank:
In this case, the rate for sale (1.2970) is important for the client, as this is the rate at which the bank will buy dollars from the client and will post the equivalent in EUR onto the client´s account, which in this case is EUR 1,542,020.05. When the client agrees with the offered rate, the deal will be closed under the above conditions.  In the case the client does not accept the offered exchange rate, he may inquire later in the course of the day, or to make an order to the dealer to sell dollars at a better rate – e. g. 1.2850 USD/1EUR. When the situation on the market changes and enables to sell dollars at the exchange rate of 1.2850, the dealer will sell the dollars on the market, and the client will be informed about this fact. The bank accepts orders of the following types:
Example: An investor plans to make investments into shares quoted at the London Stock Exchange, in the volume of GBP 1 mil.. At the moment, he has available the sum in EUR. In order to be able to make the planned investments, he must buy GBP for EUR. By phone, he contacts the dealing department of the bank in order to find out the current exchange rate of EUR/GBP. Let´s suppose the following bid quote of the bank:
In this case, the rate for purchase (0.8680) is important for the client, as this is the rate at which the bank will buy EUR 1,152,073.73 (1,000,000 / 0.8680) and will post onto the client´s account GBP 1 mil.. When the client agrees with the offered exchange rate, the deal will be closed under the above conditions. 
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