Using Forex Currency Converter For Calculating Exchange Rates

by | Jan 26, 2016 | Financial Featured

Foreign exchange deals with the relative prices of one currency with respect to another. Different countries in the world have different types of currencies and every currency can be converted into any other currency based on the exchange rate.

If you are performing online forex or CFD trading, you are concerned with a currency pair EUR/USD where EUR is the currency of Europe called Euros and USD is the currency of United States of America called US Dollars. If EUR/USD exchange rate is 1.08, this means that 1.08 USD is needed to get 1 EUR. This rate for all currency pairs keep on changing and the person concerned with a currency pair exchange rate has to investigate about the latest Forex rate of the pair. This is the case when we need to refer to a Forex currency converter which tells the latest exchange rate of a currency pair.

How does the Forex currency converter work?

Forex currency converter is an application which is used for calculating the current price of one currency with respect to another. The Forex converter gets live feeds from the real time market and updates currency price as per the schedule coded in it. Let us take the example of Yahoo currency converter:

  • Input field for country or currency for which you want the exchange price
  • Input field for the country or currency to which you want conversion.
  • Field to enter the amount of first currency you want to convert
  • Output field which displays the equivalent amount of second currency which appears after conversion.

So for example you want to convert USD into EUR. Select USD in first field and EUR in second field. Enter the value say “1” in 3rd field and you will get the result in the fourth field like “0.92” or similar.

Thus you can select any type of currency pair from the currencies available in the Forex currency converter you choose and get the desired result in the output.

How is Forex converter useful?

Forex currency converter is useful for the travelers who want to know the exact currency exchange rate of the country they are visiting. For example a traveler wants to move from USA to Europe and wants to know how much is the exchange rate of EUR in terms of USD. He can use the foreign currency converter to know the exchange rate and accordingly he can understand how much US dollars he should convert into Euros to use in the visit to Europe. Also, those that do CFD trading at https://www.xtrade.com/ or perform any other online trading, will definitely have a good use of this tool.

Similarly Forex traders who are constantly CFD trading online, need to know about the latest currency exchange rates also find the best use of this converter. Based on the current currency exchange rate only he can decide whether to go for a particular trade or not. The currency calculator is thus very useful for a traveler travelling to different countries as well as to the Forex traders whose main job is to trade with difference in currency prices at two different time positions.

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