Underlying Security of a Spot-FX Instrument

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1

Imported from previous forum

2

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

3

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