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Discussions > Foreign Exchange > Underlying Security of a Spot-FX Instrument

Underlying Security of a Spot-FX Instrument

Complete message thread from old site

Franck Mikulecz
907 days ago,(2011/10/30)

Hi Guys,

This is a technical question to get your opinion on a theoretically simple subject:

What is the "Underlying" Instrument of a Spot-FX contract, e.g. EUR/USD Spot ?

1. EUR Cash Currency
2. EUR Currency position with Spot Value Date
3. Other

Then if 2., is the underlying of "EUR Value Date Spot" then 1. ?
<==> Underlying (EUR/USD Spot) = EUR Value Date Spot
and Underlying (EUR VD Spot) = EUR Cash

Thanks for your opinion...
Franck

Jay Hurley
907 days ago,(2011/10/31)

I'll repharse you question as what is the underlying of fiat currency?
3. Government laws and regulations
In the case of EUR, created by the Maastricht treaty, it could also cease to exist.

Jay

> Hi Guys,
>
> This is a technical question to get your opinion on a theoretically simple subject:
>
> What is the "Underlying" Instrument of a Spot-FX contract, e.g. EUR/USD Spot ?
>
> 1. EUR Cash Currency
> 2. EUR Currency position with Spot Value Date
> 3. Other
>
>
> Then if 2., is the underlying of "EUR Value Date Spot" then 1. ?
> <==> Underlying (EUR/USD Spot) = EUR Value Date Spot
> and Underlying (EUR VD Spot) = EUR Cash
>
> Thanks for your opinion...
> Franck