Various traders and institutions buy and sell currencies regularly in order to gain profits by exchanging one currency with another. For every foreign trade to occur, one currency needs to be exchanged with other. For example you buy GBP using USD and this forms a GBP/USD pair. While you are trading online, depending upon the fluctuations in the prices of this pair you take a buy or sell decision with the motive of achieving profits.
What is an exchange rate?
The exchange rate here in this pair is the price of GBP in terms of USD at a particular time. This exchange rate is constantly fluctuating and it may rise of fall depending upon the market behavior of the currency pair. There are various ways to know about the current exchange rate and Forex currency converter is the most important tool to calculate the Foreign exchange rates while trading online.
Why do we need a Forex currency converter?
Take USD/CAD as an example. If the exchange rate of this pair is 1.0850, it means it costs 1.0850 CAD to exchange 1 US dollar. The exchange rate always shows that how much of the second currency in the pair is needed to get one unit of the first currency in the pair. So this calculation is very important because calculating exchange rates is always required if you want to travel abroad, perform Forex trading or perform any business in foreign countries.
A day trader in Forex needs a continuous knowledge of current rates of currencies and that is done through a good Forex currency converter. A tourist traveling to other countries need to know how much foreign currency he will take with him when traveling abroad. A businessman having employees working in abroad or dealing business in other countries of the world needs to be updated about the exchange rates on a regular basis. The knowledge of current exchange rates is extremely helpful for people wo are into trading online but the source for knowing exchange rates should be accurate and should match exactly with the current market rates.
How to calculate currency exchange rates for trading online
A forex currency converter is used for the purpose of knowing the current exchange rate while trading online at https://www.xtrade.com/. For this purpose a Forex currency converter has two input fields and one output field. In the input field the value of the currency to be converted is put and in the second field the name of the currency is selected into which you want to exchange the input currency. When you click on “Calculate” the resulting currency value is shown in the third output field. In this way a currency converter works. The currency converter used must be tested first for accuracy and relevance with the actual market prices with automatic updates.