Forex Exchange Rates

Forex Exchange Rates

Forex Exchange Rates

Forex exchange rate is the value of two different currencies and how they relate to each other. It is used by corporations, tax authorities, auditing firms, and financial institutions and is calculated on the basis of information supplied by leading market data contributors. Forex exchange rate says how much of one currency is needed to buy a unit of another. The exchange

rate is essentially a price, which can be analyzed the same way as other market prices. So when we speak of an A to B exchange rate of C, it means that if we pay 1 unit of A, we get C units of B in return.

You may find several Internet sites that instantly offer exchange rates of various currencies. What all you have to do is to select the currency pairs and with a click of the mouse you get the forex exchange rates. Additionally
you can convert a specific amount against the specified currency. You can also convert using the historic rate for a particular date.

The exchange rates are therefore prices for different currencies. So on a specific day, if the U.S. to Japan exchange rate is 115 yen, it means you can purchase 115 Japanese yen in exchange for 1 U.S. dollar. With a simple formula, you can find out how many U.S. dollars you can get for 1 Japanese yen.

Japan to U.S. exchange rate = 1 / U.S. to Japan exchange rate

Japan to U.S. exchange rate = 1 / 115 = .00869

Therefore one Japanese yen is equal to 0.00869 U.S. dollars.

Knowing the basics regarding the Forex exchange will help you to get started in understanding the forex trading. The majority of the currencies are raded against the US dollar (USD). The four next most-traded currencies are the euro (EUR), the Japanese yen (JPY), British pound sterling (GBP), and the Swiss franc (CHF). These five currencies are called the "the Majors". Some also include the Australian dollar (AUD) in this group.

The forex exchange rates are always quoted in pairs. The first currency is referred as the base currency and the second as the counter or quote currency. The counter currency is therefore the numerator in the ratio, and the base currency is the denominator. The value of the base currency
is always 1. Therefore, the forex exchange rate tells a buyer how much of the counter currency must be paid to get one unit of the base currency.
On the other hand, the forex exchange rate tells the seller how much he is going to receive in the counter currency while selling the base currency.


This ratio in the forex exchange rate is also known as 'cross rates'. This term is used when it does not involve US dollars and involves any other two foreign currencies. The concept of pip is also very important in forex exchange rates. The forex exchange rate is determined independently. The buyers and sellers and the supply and demand of certain currencies determine the forex exchange rates.

By: Paul Bryan

Article Directory: http://www.articledashboard.com

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Forex Currency Trading

Forex Currency Trading

It is possible to buy and sell money from different countries on the foreign exchange market called Forex. Forex currency traders can profit by taking advantage of the dips and swells in the foreign currency market. Capturing these differentials is easier in Forex currency trading than in other trading because the Forex market is open twenty-four hours a day, except for weekends, and it is global, so there are always buyers and sellers available. The traders can be diverse. They can be traders looking for short-term gains, such as day traders or slightly longer investment periods, or they can be foreign investors who are looking to hedge their investments with long term Forex trades.

Forex currency trading is done in amounts of currency called lots, that are usually $100,000 each, and can be purchased on margin. Forex currency trading strategies can be based on technical analysis of the history of the currency price or it can be based on analysis of a particular country s political climate, tax policy, jobless rate, inflation rate, and other factors of the country. There are many different systems of Forex currency trading.

Forex currency trading is a huge market. Daily trading is estimated at between $1 trillion and $1.9 trillion dollars. Because the amount of money is so huge, it s hard to imagine that the market can be manipulated the way a smaller market can be. Forex currency trading is also not overseen by one central agency like the Security Exchange Commission, and each country oversees the Forex currency trading activity within it s own country.

Forex Signal, Forex Signals Advice

Forex Signal, Forex Signals Advice

There are lot's of Forex signals providers out there. New Forex traders might be thinking of looking for a reliable Forex signals provider. Is there any reliable Forex signals providers available?

Personally, I will say do not pay for Forex signals. Think about it - if a Forex signals provider sells Forex signals for living, you can doubt their Forex trading skills? Or else if they are pretty good in Forex trading and making lot's of profit, I am wondering why do they still bother to sell Forex signals for money. Thus, what would be the value of such Forex signals providers? The answer is ZERO.

There are Forex traders who have been relying on Forex signals arguing those Forex signals providers really help them making money in Forex trading. These Forex traders can even show their Forex trading logs as evidence. After some though, I came out with the assumption that assuming I am the owner of a Forex signals provider, in order for my business to be in black, obviously I need some satisfying customers.

A Comprehensive Forex Broker Register

A comprehensive forex broker list includes investment banks with dealing rooms, commercial banks with treasury operations, and online brokerages that serve a larger market. The investment banks with forex trading capabilities include Morgan Stanley, Merrill Lynch, Goldman Sachs, Salomon Smith Barney, Lehman Brothers, Credit Suisse First Boston, Deutsche Bank, JP Morgan, Prudential Securities and Bear Sterns.

Some of the brokerage services are not directly accessible for all customers. For example, inter-bank market dealers and treasury operations in commercial banks handle large customer orders themselves.

The top commercial banks in the Forex Broker List, having inter-bank and treasury operations, are JP Morgan Chase Bank, Bank of America, CitiBank, Wachovia Bank, Wells Fargo Bank, Fleet Bank, US Bank, HSBC Bank, Sun Trust Bank, Bank of New York, State Street, Chase Manhattan Bank, Key Bank, Branch Bank, PNC Bank, Lasalle Bank, South Trust Bank, MBNA America Bank, Fifth Third Bank.

The online forex broker list of smaller forex accounts sees new entrants almost on a daily basis.

The online forex broker list includes Forex Capital Markets, MG Financial Group, CMS Forex, Global Forex Trading, GCI Forex Direct, Forex.com, GAIN Capital, Real time Forex SA (Geneva), Global Forex, Commerce Bank and Trust, FX Solutions, Forex MHV, swissDirekt (Swiss), Goetz Financial Forex, NY Broker Borsentermin AG, Act Forex, Online Trader, Shield FX Online Currency Trading, Forex Trade Signals, CMC Group PLC, Foreign Currency Direct Limited (UK), FX Advantage, FXCM, Forex Millenium, ACM REFCO, REFCO Spot, Easy Forex, Online Forex Trading Inc., Lincoln Corporation, Global Trade Waves, Ltd., and CIBC FX Web Dealing.

Forex Broker

A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A Forex broker is paid according to the spread or the difference between the trader s bid for a currency, and the seller s asking price for that currency. Usually this spread is less than 0.1% or ten pips. (Pips are the smallest movement a currency can make on the Forex. Pips are commonly called referred to as points.) The lower the spread, the less a trader pays a Forex broker for a trade.

The Forex market is global and does not have one central regulatory agency like the Security Exchange Commission. Each country is responsible for the actions of trades in it s own country. A Forex broker in America must register with the Commodities Futures Trading Commission (CFTC). While traders are not regulated, Forex brokers are. A Forex broker must be registered as a Futures Commercial Merchant (FCM) before that Forex broker is allowed to accept a deposit for an account from a trader. Once registered, a Forex broker is given an identification number so that a trader can check the status of a Forex broker before hiring that Forex broker. There are such people known as introducing brokers who may solicit traders for a registered Forex broker, but the introducing broker cannot accept a deposit for a trader s account. It is a good idea for any trader hiring a Forex broker to check the status of the Forex broker with the authorities