Any type of financial instrument-from electronic transactions to paper currency, checks, and signed, written orders called bills of exchange-that's used to make payments between countries is considered foreign 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 are closed within two days, and the others are set for an agreed-upon price at an agreed-upon date in the future.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). Foreign exchange (FOREX). Retrieved September 21, 2026, from http://smartdefine.org/foreign_exchange_(forex)/definitions/1154370 |
| Chicago | Barry Goldsmith. 2010. "Foreign exchange (FOREX)" http://smartdefine.org/foreign_exchange_(forex)/definitions/1154370 (accessed September 21, 2026). |
| Harvard | Barry Goldsmith 2010, Foreign exchange (FOREX), Smart Define, viewed 21 September, 2026, <http://smartdefine.org/foreign_exchange_(forex)/definitions/1154370>. |
| MLA | Barry Goldsmith. "Foreign exchange (FOREX)" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/foreign_exchange_(forex)/definitions/1154370> |