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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 countryâs currency in terms of another currency. For example, an interbank exchange rate of 119 Japanese yen (JPY, Â¥) to the United States dollar (US$) means that Â¥119 will be exchanged for each US$1 or that US$1 will be exchanged for each Â¥119.
The forex market is the largest financial market in the world, trading around $1.5 trillion each day. Trading in the forex is not done at one central location but is conducted between participants through electronic communication networks (ECNs) and phone networks in various markets around the world.The market is open 24 hours a day from 5pm EST on Sunday until 4pm EST Friday.The reason that the markets are open 24 hours a day is that currencies are in high demand.The international scope of currency trading means that there are always traders somewhere who are making and meeting demands for a particular currency.he market is open 24 hours a day from 5pm EST on Sunday until 4pm EST Friday.