In finance, the exchange rates (also known as the foreign-exchange rate, forex
rate or FX rate) between two currencies specifies how much one currency is
worth in terms of the other. For example an exchange rate of 102 Japanese yen
(JPY, ¥) to the United States dollar (USD, $) means that JPY 102 is worth the
same as USD 1. The foreign exchange market is one of the largest markets in the
world. By some estimates, about 2 trillion USD worth of currency changes hands
every day.
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.