Foreign Exchange Trading

Definition: Foreign Exchange Trading is the activity of buying and selling international currencies by a wide range of different types of buyers and sellers.
FET supports international trade and investment by enabling currency conversion. For example a business in the US can import goods from Japan and pay in Yens, even though its income is in Dollars. FET also supports direct speculation in the value of currencies and also carry trade, speculation based on the interest rate differential between two currencies.

More on foreign exchange trading.
More on banking: Commodity Trading, Equity Trading, Fixed Income Trading, Investment Bank, Know Your Customer, more...

MBA Brief offers accurate and concise definitions of MBA concepts, frameworks, methods and models.

We love to keep things really short, but provide links to learn more about your subject and to similar concepts.