In modern day usage, "foreign exchange office" (FXO) and "foreign exchange station" (FXS) refer to the different ends of a telephone line in the context of voice over IP (VoIP) systems and its interconnection with analog telephony equipment. The FXO side is used for the telephone, and the FXS side is the analog telephone adapter.
Historically, a foreign exchange (FX) service was an access service in a telecommunications network in which a telephone in a given exchange area is connected, via a private line, as opposed to a switched line, to a telephone exchange or central office in another exchange area, called the foreign exchange, rather than the local exchange area where the subscriber station equipment is located. To call originators, it appears that the called party having the FX service is located in the foreign exchange area. It is assigned a telephone number of the foreign exchange. The telecommunication circuit between central offices that implements foreign exchange service has complementary interface types at each end. At the foreign central office that provides the service, the interface is called the foreign exchange office (FXO) end, and at the end where the subscriber station is connected, it provides the foreign exchange station (FXS) interface.
The FXO and FXS terminology is frequently used outside of the context of foreign exchange links. Examples include channel banks with T1 links.[1]