Foreign exchange introduction

Foreign exchange refers to foreign currency or various means of payment expressed in foreign currency for international settlement of creditor's rights and debts. The concept of foreign exchange has a double meaning, that is, there are dynamic and static points, and foreign exchange conversion is calculated according to the foreign exchange rate.

The foreign exchange market is a global decentralized market that determines the relative value of different currencies. Unlike other markets, foreign exchange does not centrally handle depository or exchange. Instead, these transactions are conducted by several market participants in several locations. It is very rare that the value of any two currencies is the same as the other, and it is also very rare that any two currencies maintain the same relative value for more than a short period of time. In terms of foreign exchange, the exchange rate between two currencies is often changing.


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