> ## Documentation Index
> Fetch the complete documentation index at: https://developer.tazapay.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Overview

FX comes into play whenever funds move between different currencies during a payout.

Depending on your setup, FX can occur at

* Conversion from holding (balance currency) to payout currency
* Conversion from payout currency to destination currency
* Both

### Holding FX

**Balance currency → Payout currency**

This occurs when:

* Your holding balance is in one currency (e.g. USD)
* You initiate a payout in a different currency (e.g. EUR)
  Tazapay converts funds from the holding currency to the payout currency as part of the payout flow.

### Destination FX

**Payout currency → Destination settlement currency**

This occurs when:

* The payout is initiated in one currency
* The destination bank or rail requires settlement in another currency

Tazapay handles the conversion transparently as part of routing and settlement.

> Tazapay also supports locking exchange rates across different stages of the payout lifecycle.

<Frame>
  <img className="block dark:hidden" src="https://mintcdn.com/tazapay-58ae360f/SWJmhDU02-pAjete/images/diagrams/payout-flow-light.png?fit=max&auto=format&n=SWJmhDU02-pAjete&q=85&s=2a1ecfd06cad54a8ca5e041103bf1fed" alt="Payout flow" width="3840" height="925" data-path="images/diagrams/payout-flow-light.png" />

  <img className="hidden dark:block" src="https://mintcdn.com/tazapay-58ae360f/SWJmhDU02-pAjete/images/diagrams/payout-flow-dark.png?fit=max&auto=format&n=SWJmhDU02-pAjete&q=85&s=f49c0658cd7012939d36fec606444a1d" alt="Payout flow" width="3840" height="925" data-path="images/diagrams/payout-flow-dark.png" />
</Frame>

### Relevant Links

1. [Locking exchange rates for the maker-checker flow](/payouts/managing-fx/for-the-time-duration-between-maker-checker-flow)
2. [Locking exchange rates for post-payout creation funding](/payouts/managing-fx/for-the-funding-time-duration)