SPOT

Spot refers to the price of one currency in terms of another. For example, EUR/USD = 1,2010 means that 1 EUR equals 1,2010 USD. A spot price is quoted as the spread between the BID (the level, where the bank buys the underlying currency) and the OFFER (the  level, where the bank sells the underlying currency). Spot transactions settle two business days after the transaction day for all currency pairs, except USD/CAD, which settles one business day after the transaction day.

FORWARD OUTRIGHT CONTRACTS

A forwad outright contract is the price of one currency in terms of another, for settlement on a date other than spot.  In other words, spot rate is adjusted by accounting for the interest rate differential, between the two currencies. The interest rate differential is expressed as swap pointswhich, also quoted as BID and OFFER, added to the spot component, in order to obtain the forwad price. For example :

  
                                       BID             OFFER

  Spot EUR/USD               1.2010         1.2012
  
  2months forwards
  (swap points)               -0.001035     -0.001015

   Forward price               1.199965      1.200185 

Forward outrights settle at the predetermined future date.