amount of exposure a bank or investor has with a customer for both
spot and forward Forex contracts.Spot contracts are when one buys a currency right away with little to
no notice ahead of time. Usually it is a verbal agreement made
between the buyer and the seller. A forward contract is when one can
set a price on something and buy it at that price however does not
officially pay until a later date. This works well for someone who
can stick with the original price and not have to worry about the
exchange rate changing on them at a later time.