Free Forex & Currency Trading Articles

Professional Authors - Professional Articles

Forex Trading Tips - How To Understand and Appreciate The Currency Rates

Most of the time currency rates are referred to as foreign exchange rates and these rates will tell you how much of the currency you will need to buy of a unit of another currency. These rates will be quoted on what are called exchange rate desks as well as banks and in the media.

There are also interbank rates and these are rates that banks and brokers will use when they work with each other and then there are also retail rates and these are what individuals get when they are considering exchanging different currencies.

You will need to make sure and identify what the exchange rate is that you need to get and then find out what their codes are. You will need to know what the currency exchange rates are so you can determine if and when you want to trade. You can then look up their international codes this will usually be just three letters all in capital letters. For example the euro would be EUR and of course the U.S. Dollar would be USD.

Next you will need to look up an exchange rate for all the currency you are interested in. You can simply use any online search engine to look for the codes and the exchange rate that you might be interested in. If you are considering the exchange rate of the euro and the US dollar then you would simply type in “EUR/USD” or “USD/EUR”. The search engine will be able to understand what you are asking with no problems.

Once you have the information brought up you can then read the exchange rate. Usually the rate is going to be bigger than 1. This is because traditionally the rates are given in a way so you will know just how much of the cheaper currency that you are going to need in order to buy a unit of the more expensive currency. So, if a euro is more expensive that the dollar the exchange rate would show how many dollars it would take to buy just one euro. So it would be noted as EUR/USD. The first would be the EUR and would mean that it was the more expensive currency and then the USD would be the less expensive currency.

If by chance you need to find out the reverse of the exchange rate you would simply divide the 1 by the exchange rate of the currency. Example would be if the EUR/USD was 1.3 then the USD/EUR would be 1/1.3=0.77. And this would mean that it would take 0.77 euros to buy just one US dollar.

This is something that should be considered second nature for someone who wants to go into Forex trading.

Post has no comments.
Post a Comment

Captcha Image

forex technical trading market trading newsletters forex trading strategy demo accounts forex chart extra money social media sites trading accounts trading platforms trading strategies currency pairs forex advisor scalping trading software exchange rates historical chart initial trading ask price trading advice forex trader computer program trading strategy EUR/JPY making money currency rates trading top tips software program forex trade foreign exchange market charting trading systems currency trading GBP/USD social media forex traders trading fluctuations professional traders amateur traders forex currency brokers trading scam offers forex trading different dealers market volatility forex brokerage exposure profits currency trade sell signal forex trade station currency exchange market pip forex trading generally EUR money market right forex trading demo account price tracking forex tips make money online Commodity Futures Trading Commission beginning forex foreign exchange RAM forex trading trading course support level exchange rate trade market first trade comfortable chair trend trading USD/CHF forex news forex trading tips trading plan panel monitor trading indicators big banks beginning forex trader frequency sideways market National Futures Association forex trading help money market account investment volume monitors global markets forex trends forex education fast money different traders forex tool indicators investing singel currency Future Commission Merchant financial fear and greed forex broker foreign exchange trading Metatrader 4 live forex chart trader USD forex books bid price USD/EUR currency trades forex trading station zero sum game trends US Dollar solid forex trading day trader spot price patterns smartphone day trading course cash trading tips foreign exchange rates forex bar chart software understanding trend trading experience forex trading forex software spot currencies lots make money brokerage account forex trading software forex trading advice gut instinct internet Euro no guarantee chart patterns fundamentals money forex trading market iphone apps currency EUR/USD scammers brokerage sites trade station bank decisions fore trading options resistance level day trading dollar amount trading

Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs