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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.
A Forex lot is a trading term used to describe the size of a trading position in Forex with reference to a standard of 100,000 units of the base currency. The benchmark for forex trades is 100,000 units of the base currency, and since this trade size is the standard against which other trade sizes are measured, this is referred to as one Standard Lot.