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.



Comments
Post has no comments.
Post a Comment




Captcha Image






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



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

Finance Blogs
Finance