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.

More On This Topic
  1. Legalities Of Bitcoin And Other Cryptocurrency
  2. How To Handle Foreign Income Tax
  3. Exploring Presidential Conflicts of Interest
  4. Four Facts About Consideration Contract Law Requires You To Know
  5. What Is Common Law?
  6. Marijuana: Recreational, Grow, & Medical Laws By State 2020
  7. Is A Verbal Agreement Legally Binding?
  8. Plausible Deniability Definition, Examples, & Laws
  9. How To Get An I-551 Visa Stamp
  10. Brexit Explained For Those Who Don’t Live In The UK

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


Link to This Definition
Did you find this definition of FOREIGN EXCHANGE (FX) helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary