Exchange Market and Currency

In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.

Retail exchange market

People may need to exchange currencies in a number of situations. For example, people intending to travel to another country may buy foreign currency in a bank in their home country, where they may buy foreign currency cash, traveller's cheques and travel card.From a local money changer they can only buy other country cash. At the destination, the traveller can buy local currency at the

 airport, either from a dealer or through an ATMcard. They can also buy local currency at their hotel, a local money changer, through an ATM, or at a bank branch.When they purchase goods in

a market and they do not have local currency, they can use a credit card, which will convert to the purchaser's home currency at its prevailing exchange rate.

Currency

A currency in the most specific use of the word refers to money in any form when in actual use or circulation, as a medium of exchange, especially circulating paper money. This use is synonymous with banknotes, or (sometimes) with banknotes plus coins, meaning the physical tokens used for money by a government.

International Currency Markets

The markets  in which participants from around the world are able to buy or sell or exchange on different currencies.International currency markets are made up of banks,commercial companies,central banks,investment management firms,retail forex brokers and investors.