Currency Exchange

Trading one currency for another. Or the place where such trading...goes down.

You fly from New York to London and want to buy a package of M&Ms after you land. You just have dollars in your pocket. You need British pounds to buy the candy. You need to trade your dollars for pounds, because the guy running the snack kiosk doesn't accept foreign currency.

You find a currency exchange desk. They check the current exchange rate, set by various global markets. So you trade $100 in U.S. currency to £76.24 in British currency. That transaction exemplifies currency exchange.

Now you can use some of those pounds for the M&Ms. And all is right with the world.