Spot FX Market Interview Guide
Spot FX market interview guide for OTC structure, quotes, spreads, settlement, liquidity, market data, and execution caveats.
Candidates discussing spot currency markets and FX execution.
Spot FX is not one central book
Spot FX liquidity is fragmented across dealers, platforms, and venues. Interview answers should avoid assuming a single consolidated exchange book.
Quotes include bid and ask
The spread, available size, relationship, venue, and settlement conventions all affect whether a spot quote is useful for execution or valuation.
Concrete example
A tight displayed EUR/USD quote may not be executable for the full desired size, especially around a macro release or liquidity event.
Settlement and cutoffs matter
Spot settlement conventions, holidays, and cutoffs can affect cash flows and operational risk. State simplifications when the prompt ignores them.
Common mistakes
Candidates often model spot FX like a single stock exchange. Strong answers mention fragmentation, spread, settlement, and quote direction.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.