The most common form of currency exchange is the conversion of one currency to another through the use of currency exchange markets. These markets, which can be physical or electronic, allow individuals, businesses, and financial institutions to buy and sell different currencies. The exchange rate, which is the price of one currency in terms of another, is determined by supply and demand in the market. The most liquid and widely traded currency pairs are those involving the U.S. dollar, the Euro, the Japanese Yen, the British Pound, and the Swiss Franc. Retail foreign exchange is also a way for people to purchase foreign currencies for their travel, or for small businesses or remittance purposes.

The most common form of currency exchange is the spot market, where currencies are traded for immediate delivery at the current exchange rate. This market facilitates transactions for businesses, travelers, investors, and governments, with trades typically settled within two business days (T+2).

Another prevalent method is retail currency exchange, offered by banks, exchange bureaus, and online platforms, where individuals swap currencies for travel or commerce. Additionally, foreign exchange (Forex) trading is a massive global market, with trillions traded daily by institutions and speculators.

Credit/debit card conversions and digital payment systems like PayPal also enable real-time currency exchange. While methods vary, the spot market remains the backbone of forex transactions due to its liquidity and efficiency.

The most common form of currency exchange is the spot market, where currencies are traded for immediate delivery at the current exchange rate. This market facilitates transactions for travelers, businesses, and investors who need foreign currency for trade, tourism, or investment. Banks, foreign exchange brokers, and online platforms are key players in spot transactions.

Another common method is retail currency exchange, offered at airports, banks, and exchange bureaus, where individuals swap cash. Additionally, forex (foreign exchange) trading is popular among investors who speculate on currency price movements for profit.

Electronic transfers and credit/debit card conversions are also widespread, enabling seamless international transactions. The spot market remains dominant due to its liquidity, real-time pricing, and accessibility for both individuals and institutions.