# Underlying Security of a Spot-FX Instrument

**URL:** <https://forum.fixtrading.org/t/underlying-security-of-a-spot-fx-instrument/13442>\
**Category:** General Q&A\
**Tags:** imported, foreign-exchange, xid\_165513\
**Created:** [October 30, 2011, 6:45pm UTC](https://forum.fixtrading.org/t/underlying-security-of-a-spot-fx-instrument/13442 "2011-10-30T18:45:50Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![franckmikulecz\_x](https://yyz2.discourse-cdn.com/flex010/user_avatar/forum.fixtrading.org/franckmikulecz_x/32/55_2.png) [@franckmikulecz\_x](https://forum.fixtrading.org/u/franckmikulecz_x)\
**Post date:** [October 30, 2011, 6:45pm UTC](https://forum.fixtrading.org/t/underlying-security-of-a-spot-fx-instrument/13442/1 "2011-10-30T18:45:50Z")

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Imported from previous forum

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**Author:** ![franckmikulecz\_x](https://yyz2.discourse-cdn.com/flex010/user_avatar/forum.fixtrading.org/franckmikulecz_x/32/55_2.png) [@franckmikulecz\_x](https://forum.fixtrading.org/u/franckmikulecz_x)\
**Post date:** [October 30, 2011, 6:45pm UTC](https://forum.fixtrading.org/t/underlying-security-of-a-spot-fx-instrument/13442/2 "2011-10-30T18:45:50Z")

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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

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**Author:** ![jayhurley](https://avatars.discourse-cdn.com/v4/letter/j/977dab/32.png) [@jayhurley](https://forum.fixtrading.org/u/jayhurley)\
**Post date:** [October 31, 2011, 2:57am UTC](https://forum.fixtrading.org/t/underlying-security-of-a-spot-fx-instrument/13442/3 "2011-10-31T02:57:40Z")

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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