What is FOREIGN EXCHANGE (FX)?

A transaction that involves the exchange of two currencies. TRADING in foreign exchange is extremely active, with institutions regularly using SPOT and DERIVATIVE contracts to HEDGE, ARBITRAGE, or SPECULATE. See also RATE.

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Related Legal Terms
FORWARD FOREIGN EXCHANGE (FX) CONVERSION, FOREIGN EXCHANGE CONTRACT, FOREIGN EXCHANGE OPTION, FORWARD FOREIGN EXCHANGE (FX) REVERSA, FOREIGN EXCHANGE TRANSLATIONAL POSITION, FOREIGN EXCHANGE (FOREX OR FX), FOREIGN EXCHANGE RISK, FOREIGN BILL OF EXCHANGE, FOREIGN EXCHANGE OVERNIGHT POSITION, FOREIGN EXCHANGE RESERVES


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