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What is meant by exchange rates?

In: Investing and Financial Markets [Edit categories]

Answer:

In finance, the exchange rates (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specify how much one currency is worth in terms of the other. For example an exchange rate of 123 Japanese yen (JPY, ¥) to the United States dollar (USD, $) means that JPY 123 is worth the same as USD 1. The foreign exchange market is one of the largest markets in the world. By some estimates, about 2 trillion USD worth of currency changes hands every day.
The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.
Edit:
Definition the value of one currency in terms of another.

First answer by ID1306264231. Last edit by Bladeofblackness77. Contributor trust: 2 [recommend contributor ]. Question popularity: 2 [recommend question].

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