Business and Personal Finance Dictionary

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• FOREIGN EXCHANGE (FOREX)
  
  Any type of financial instrument-from electronic transactions to paper currency, checks, and signed, written orders called bills of exchange-that's used to make payments between countries is considered foreign exchange. Large-scale currency trading, with minimums of $1 million, is also considered foreign exchange and can be handled as spot price transactions, forward contract transactions, or swap contracts. Spot transactions are closed within two days, and the others are set for an agreed-upon price at an agreed-upon date in the future.
  
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