foreign exchange

(redirected from Forex)
Also found in: Dictionary, Thesaurus, Medical, Financial, Acronyms, Wikipedia.
Related to Forex: Forex Trading

foreign exchange,

methods and instruments used to adjust the payment of debts between two nations that employ different currency systems. A nation's balance of paymentsbalance of payments,
balance between all payments out of a country within a given period and all payments into the country, an outgrowth of the mercantilist theory of balance of trade.
..... Click the link for more information.
 has an important effect on the exchange rate of its currency. Bills of exchange, drafts, checks, and telegraphic orders are the principal means of payment in international transactions. The rate of exchange is the price in local currency of one unit of foreign currency and is determined by the relative supply and demand of the currencies in the foreign exchange market. Buying or selling foreign currency in order to profit from sudden changes in the rate of exchange is known as arbitrage. The chief demand for foreign exchange within a country comes from importers of foreign goods, purchasers of foreign securities, government agencies purchasing goods and services abroad, and travelers. Exchange rates were traditionally fixed under the gold standard and later by international agreements, but in 1973 the major industrial nations of the West adopted a system of "floating" rates that allowed for fluctuation within a limited range. The currencies of Western nations are generally allowed to fluctuate freely, although central banks will intervene in the foreign exchange markets in an attempt to control excessive or undesirable appreciation or depreciation.

Bibliography

See S. W. Arndt et al., ed., Exchange Rates, Trade and the U.S. Economy (1985); N. Abuaf and S. Schoess, Foreign-Exchange Exposure Management (1988).

The Columbia Electronic Encyclopedia™ Copyright © 2013, Columbia University Press. Licensed from Columbia University Press. All rights reserved. www.cc.columbia.edu/cu/cup/
References in periodicals archive ?
Forex in plain term is the buying of one currency and selling to another currency simultaneously, that traders can take profit via the rising or falling prices of the traded currencies.
Training under an experienced broker can also boost your chances of becoming a successful online forex trader.
Girls Gone Forex, LLC is a financial education and technology company, founded by Robyn Mancell and Linda White in 2016.
The online forex market in Kenya is however concentrated to buying and selling of currencies, with Abungana estimating daily volumes at Sh34.5 million ($350,000 million) in the offshore trading platforms.
Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs.
So investors looking for another method of diversification might want to consider forex. But what are the different ways to gain exposure to this asset class that trades 24 hours a day, five days a week?
The move is based on an instruction of Premier Sean Chen at a recent economic and financial meeting at the Executive Yuan (the Cabinet), who asked the FSC and the CBC to study the feasibility of expanding the application scope of the statute of forex management, so that securities firms and insurance firms with a certain business scale can also undertake forex business.
The application, now available as a free English-language <a href="https://market.android.com/details?id=com.forex.forextrader" target="_blank">download</a>&nbsp;in the Android Marketplace, allows smart phone traders to access their Forex.com accounts on the move.
This international survey, based on online responses from over 3000 individuals, draws the first comprehensive portrait of the individual forex trader.
Initially, forex for me was just an opportunity to make legitimate money.
Girls Gone Forex, LLC is a woman owned and operated financial education and technology company that specializes in the largest financial market in the world, Forex.
Olga Rybalkina, CEO of Forex Time, said: "We are honoured to receive these two important awards from Global Banking and Finance Review and are extremely satisfied to see that our unique approach centred on targeting each market's individual culture identity and trading needs has been recognised."