Forex Glossary

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An exchange rate (also called a foreign-exchange rate) between two currencies is the rate at which one currency can be exchanged for another. For example, an exchange rate of 1 US Dollar to .67 Euros means that $1 USD is worth .67 Euros (€). The current exchange rate is also referred to as the Spot exchange rate. Rates that are quoted and traded today, but are paid on a specified future date, are called Forward exchange rates.