An exchange rate (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency.
The actual rate quoted by foreign exchange dealers in the retail market will usually be different for selling or buying currency, which will incorporate an allowance for the dealer's margin in trading, or else the margin may be recovered in the form of a "commission" or other fee.
The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.
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