The paper points to all the most important and important terms related to the basic concept of foreign currency, ie the concept of currencies (rights of claims by the state expressed in foreign currency). Unlike the term foreign currency, which denotes effective money, foreign currency is recorded as receivables in the accounts of banks or other financial institutions, and as securities (bills of exchange, checks, bonds, etc.) normalized to a foreign currency or a basket of currencies (Special Drawing Rights). Starting from the history and background of the broadest and most comprehensive term such as the FX MARKET (represents a specialized part of the financial markets in which foreign currencies are bought and sold, the supply and demand for foreign exchange is coordinated, the exchange rate is determined and the country's foreign exchange reserves are managed). The paper examines which are the world's largest foreign exchange markets, emerging participants, and what deals are made in it performed. Then, the paper warns about the dangers of FOREIGN RISK (this risk exists always when the company conducts business transactions in a currency other than its own) and what type of insurance there is. Then comes the key concept of a given topic EXCHANGE RATE (price of one currency expressed in another currency), to determine what types of exchange rates exist, the foreign exchange market in terms of gold standard and paper currency, the theory of the formation of foreign exchange market, and there and the concept of FOREIGN TRANSACTIONS and FOREIGN EXCHANGE SYSTEM, where the difference between a spot and a forward foreign exchange transaction is compared and what the role of financial institutions is. The paper also emphasizes the hedging INSTRUMENTS of gainst the exchange rate which are very significant and the hedging against currency risk for the companies by negotiating the forward rate. Finally, he examines foreign exchange (basic information) on the basis of a small but very successful business.