WHAT IS EXCHANGE RATE IN FOREX FIXED VS FLOATING

Forex Exchange is the transaction between two currencies when one is traded for the other. An example is swapping Pounds for the U.S. dollar. It has its unique market, which is known as the Forex Market.

The market chooses the value, which is also known as the exchange rate in the forex of most currencies. Well, the foreign currency could be so simple such that changing currency in a local bank defines it.

It could mean more like a transaction of currencies on the foreign exchange market. An instance is a trader believing that a central bank will tighten or ease monetary policy such that one currency has more strength than another one.