At the end of each business day the contract will be rolled over. Usually a rollover fee is charged, depending on the two currencies’ interest rates.
The client will initially deposit a margin which will typically be lower than the margin required for a forward contract. When the client closes the position he will have the option to either request delivery of the underlying cash flow or opt for a settlement of the resulting Profit/Loss.
Rolling Spot contracts are more flexible than Forward contracts and require less initial margin.
The client can trade electronically and over the phone on a 24 hour basis and monitor his exposure in realtime.