What is foreign exchange and foreign trade?

What is foreign exchange and foreign trade?

What is foreign exchange?

Foreign exchange is the exchange of one currency for another or the conversion of one currency into another currency. Foreign exchange also refers to the global market where currencies are traded virtually around the clock.

What is the meaning of foreign trade?

Foreign trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP).