Definition of INDIRECT EXCHANGE. 1. : exchange (as of checks, drafts) between three or more places.2. : exchange in which rates give the value of the unit of home currency in terms of foreign currencies — compare fixed exchange.ADVERTISEMENT. This word doesn't usually appear in our free dictionary, but the definition from our premium Unabridged Dictionary is offered here on a limited basis.efinition of INDIRECT EXCHANGE. 1. : exchange (as of checks, drafts) between three or more places. 2.