Also found in: Dictionary, Thesaurus, Medical, Acronyms, Encyclopedia, Wikipedia. Foreign Exchange MarketA financialtab forex 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. 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. 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. See FOREIGN CURRENCY, FOREIGN EXCHANGE MARKET. See FOREIGN CURRENCY, FOREIGN CURRENCY MARKET. Want to thank TFD for its existence?