What Is Foreign Exchange And Meaning Of Foreign?

The meaning of Foreign is alien, international, or outside. Foreign exchange is the conversion of currency. In other words it is the valuation of a currency against some international currency. For example, the worth of dollar against pounds. There are Forex markets where foreign exchange is carried out. In a foreign exchange, one party buys a currency and the other sells it. The rate at which they are exchanged is known as Forex rate. Foreign exchange constitutes a largest industry and it is a form of liquid financial market.

Foreign exchange is very important for making payments in different currencies, in trade and also when you are traveling to some other country.

The definition of foreign is 'located away from one's native country'.

Foreign Exchange is the phenomenon of exchanging money in one currency for another and it is traded on foreign exchange markets. The foreign exchange market refers to the market for currencies

The transactions in the market typically involve one party purchasing one currency in exchange for paying a quantity of another. It is the largest and most liquid financial market in the world, and includes trading between large banks, currency speculators, corporations and other institutions. The average daily volume in the global forex is continuously growing and was last reported to be over $4 trillion in April 2007 by the Bank for International Settlement