Foreign exchange trading is a term used to describe the monetary business tractions that occurs in the international marketplace. This type of transaction may occur between businesses internationally or between governments of different countries. In some instances, businesses of one country and a government of another country may also be involved in the business trade. Another way to define foreign exchange trading has a basis on bills. Negotiable bills drawn in one country are to receive payment in another country. Foreign exchange trading often has a definition as Forex or FX trading. In this market, the currencies of one country are traded for the currencies of another, in the hopes of turning a profit.