foreign exchange

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Foreign exchange

Currency of another country. Abbreviated Forex.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Foreign Exchange Market

A market for the trading of currencies. For example, one may buy dollars or sell pounds on a forex market. Foreign exchange is one the largest and most liquid markets in the world. Trading occurs over-the-counter, and most of the major players are governments, banks, and speculators. Forex markets are often used in hedging strategies.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Foreign exchange (FOREX).

Any type of financial instrument that is used to make payments between countries is considered foreign exchange. The list of instruments includes electronic transactions, paper currency, checks, and signed, written orders called bills of exchange.

Large-scale currency trading, with minimums of $1 million, is also considered foreign exchange and can be handled as spot price transactions, forward contract transactions, or swap contracts.

Spot transactions close at the market price within two days, and the others are set to close at an agreed-upon price and an agreed-upon date in the future.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

foreign exchange

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

foreign exchange

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The Monetary Authority of Singapore supervises the activities of the foreign exchange trading agencies and commercial banks carrying out the forex trading services in Singapore.
Singapore is the third-largest foreign exchange market, with the best US dollar liquidity in Asia, and now, the largest offshore yuan hub.
In India, however, where there is a strict exchange control system, there is no foreign exchange market as such.
The important functions of a foreign exchange market are to transfer finance, purchasing power from one nation to another.
to facilitate buying and selling spot or forward foreign exchange.
The basic function of the foreign exchange market is to facilitate the conversion of one currency into another, i.e., to accomplish transfers of purchasing power between two countries.
In performing the transfer function, the foreign exchange market carries out payments internationally by clearing debts in both directions simultaneously, analogous to domestic clearings.
The other function of the foreign exchange market is to provide credit, both national and international, to promote foreign trade.

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