A currency for which there are no barriers or restrictions in the foreign exchange market, allowing it to be freely exchanged for other currencies.
An exchange rate is the rate at which one currency can be converted into another. It indicates the relative value of two currencies and is a critical factor in international trade and finance. The UK uniquely expresses exchange rates as the number of units of a foreign currency that £1 sterling will buy.
FX, or Foreign Exchange, refers to the global market where currencies are traded. It is one of the most liquid and largest financial markets in the world, encompassing all aspects of trading, buying, selling, and exchanging currencies at current or determined prices.
The spot rate is the current market price at which a particular currency can be bought or sold for immediate delivery, typically within two business days.
