The exchange rate is the price paid for one currency in exchange for another. Major banks around the world constantly exchange currencies for their customers for tourism, trade, and for their own accounts to speculate on the daily changing values of the currencies. Most trading is done in the Spot Cash market, conducted primarily by banks. Forex is the largest financial market in the world, trading some $5 trillion daily.
Foreign exchange takes place when one country's currency is exchanged for another country's currency. ' Forex ', also FX, is an abbreviation for Foreign Exchange.
