n. (Abbr. FX)
- Transaction of international monetary business, as between governments or businesses of different countries.
- Negotiable bills drawn in one country to be paid in another country.
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American Heritage Dictionary:
foreign exchange |
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Britannica Concise Encyclopedia:
foreign exchange |
For more information on foreign exchange, visit Britannica.com.
Barron's Banking Dictionary:
Foreign Exchange |
Currency-literally foreign money-used in settlement of international trade between countries. Trading in foreign exchange is the means by which values are established for commodities and manufactured goods imported or exported between countries. Creditors and borrowers settle the resulting international trade obligations, such as bank drafts, bills of exchange, bankers' acceptances, and letters of credit, by exchanging different currencies at agreed upon rates.
The result of all this international trade is that financial institutions accumulate surpluses of different currencies from loan repayments by foreign borrowers, and also from import-export trade financing on behalf of bank customers.
The interbank foreign exchange market is an over-the-counter market, a network of commercial banks, central banks, brokers, and customers who communicate with each other by telex and telephone throughout the world's major financial centers. Foreign exchange traders also make markets or speculate in different currencies, usually anticipating future appreciation of stronger currencies against weaker ones, through the foreign exchange Forward Market and the Currency Futures market.
See also Forward Exchange Contract; Forward Forward.
Oxford Dictionary of Geography:
foreign exchange |
The foreign capital earned by a country's exports. Since the currency of many less developed countries is not accepted by international markets, it often becomes necessary to earn foreign exchange in order to buy imports.
Columbia Encyclopedia:
foreign exchange |
Bibliography
See P. Einzig, History of Foreign Exchange (2d ed. 1970); I. Wexler, Fundamentals of International Economics (2d ed. 1972); N. Abuaf and S. Schoess, Foreign-Exchange Exposure Management (1988).
Dictionary of Cultural Literacy: Economics:
foreign exchange |
The ways in which debts between two nations that use different currencies are paid. Foreign exchange rates can have an important effect on a nation's economy, because the value of its currency in other countries affects the cost of both imported and exported goods and services. (See balance of payments.)
Investopedia Financial Dictionary:
Forex - FX |
The market in which currencies are traded. The forex market is the largest, most liquid market in the world with an average traded value that exceeds $1.9 trillion per day and includes all of the currencies in the world.
Investopedia Says:
There is no central marketplace for currency exchange; trade is conducted over the counter. The forex market is open 24 hours a day, five days a week and currencies are traded worldwide among the major financial centers of
The forex is the largest market in the world in terms of the total cash value traded, and any person, firm or country may participate in this market.
Related Links:
In this online tutorial, beginners and experts alike can learn the ins and outs of the retail forex market. Forex Tutorial: The Forex Market
Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers. A Primer On The Forex Market
Before entering this market, you should define what you need from your broker and from your strategy. Getting Started In Forex
We go over the ground rules and available resources needed for this undertaking. Forex: Wading Into The Currency Market
Random House Word Menu:
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Wikipedia on Answers.com:
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![]() | American Heritage Dictionary. The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company. All rights reserved. Read more |
![]() | Britannica Concise Encyclopedia. Britannica Concise Encyclopedia. © 1994-2012 Encyclopædia Britannica, Inc. All rights reserved. Read more | |
![]() | Barron's Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved. Read more | |
![]() | Oxford Dictionary of Geography. A Dictionary of Geography. Copyright © Susan Mayhew 1992, 1997, 2004. All rights reserved. Read more | |
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![]() | Dictionary of Cultural Literacy: Economics. The New Dictionary of Cultural Literacy, Third Edition Edited by E.D. Hirsch, Jr., Joseph F. Kett, and James Trefil. Copyright © 2002 by Houghton Mifflin Company. Published by Houghton Mifflin. All rights reserved. Read more |
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