Читать книгу Fundamentals of Financial Instruments - Sunil K. Parameswaran - Страница 31

The term foreign exchange refers to transactions pertaining to the currency of a foreign nation. Thus, foreign exchange markets are markets where foreign currencies are bought and sold. The conversion of one currency into another is termed as exchange. A foreign currency is also a type of financial asset, and consequently it will have a price in terms of another currency. The price of one country's currency in terms of that of another is referred to as the exchange rate. Foreign currencies are traded among a network of buyers and sellers, composed mainly of commercial banks and large multinational corporations, and not on an organized exchange. Thus, the market for foreign exchange is referred to as an over-the-counter or OTC market. Physical currency is rarely paid out or received. What happens in practice is that currency is transferred electronically from one bank account to another.