Forex” is the abbreviation most applied today for “foreign exchange,In meaning the price of one foreign exchange in terms of another currency. Obviously, all Forex prices make reference to the relationship between two stock markets, i.e., a pair of forex.
The term “Forex” is used interchangeably with the expression “FX.” Both are used today and both refer to exactly the same thing, foreign exchange. The term “FX” is mostly included in the US while “Forex” was even more broadly used in the UK until recently. Professional traders in the US in banks and brokers normally use the term “FX” while “Forex” may be the term used in the retail market, adopted from the British usage. Also used is the message “currency,” as in “I trade currencies” or simply “something happened in the currency market.”
Foreign return refers literally to cash, or more accurately, to funds in two different denominations. The actual “exchange” part of the term means delivering one thing of monetary value for a different thing of comparative value. The word?exchange?refers to the transaction in which each of two parties is willing to exchange his respected basket of money for the comparative amount of money denominated in the second foreign currency. The price at which the two functions are willing to make the exchange is a?exchange rate.
The price of one currency concerning another currency is called a “rate” without a “price,” although the word “price” is equally valid and often utilized. Foreign exchange is the only market place in which the word rate is used in place of the word price. The explanation for this usage is probably as a consequence of word “rate” being used since the Old to refer to a tariff or tax levy, since converting one currency to another calls for applying a ratio or a proportion to one currency compared to the other. A common Latin key phrase is “pro rata” from “pro rata parte,” meaning “in proportion.” The word “rate” in English comes from the Latin.