What is foreign exchange and what is it's significance?

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Answer:

According to the dictionary of financial terms 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.

learn more basic forex info here: http://www.marketforex.net/forex_basics.html

and the importance of forex here: http://www.marketforex.net/forex-leverage-importance.html

First answer by Ilanana. Last edit by Ilanana. Contributor trust: 8 [recommend contributorrecommended]. Question popularity: 9 [recommend question].

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