FX instrument

An FX instrument usually refers to a foreign exchange derivative instrument.

Like other derivative instruments, they were originally designed to reduce financial risk (in this case foreign exchange risk).

However, like other derivatives, FX instruments can also be used for speculation.

FX instruments include foreign exchange forward contracts, FX swaps and FX options.

They are also known as foreign currency instruments.

See also

• Derivative instrument
• Foreign exchange forward contract
• Foreign exchange risk
• FX swap
• Option
• Speculation