Every trader should know how to read and calculate currency exchange rates. The task is quite simple considering different tools available for investors. They include such instruments as a currency exchange rate converter and niche-specific services where one can track real-time quotes and trend moves. While finding a required quote is not that hard, reading them can sometimes be a challenge, especially for a beginner trader.
In this article, we will discuss easy ways to read the quotes as well as use additional tools to calculate foreign currency exchange rates.
Tips to Find and Read Foreign Currency Exchange Rates
Traders can use various sources to find price quotes and real-time rates. Banks are probably the first and most obvious way. Let’s say, you plan to visit a foreign country and want to use local currency. The first thing you would do is to turn to the nearest bank. Traders would rather use data provided by such websites as EX.com. Here you will find currency exchange rates between all available foreign currencies that are traded globally.
If you are new to this website, the following pints are necessary to consider:
- All rates and quotes are provided in pairs showing the current value of one currency to another.
- USD and EUR are used as a reserved currency by the majority of banks. This is why they are most commonly quoted.
- Major currency pairs are prone to fluctuation and influenced by different economic, geopolitical, and other factors. Additionally, we should take into account the supply and demand, hedging activities, etc. Quote changes that lead to the currency value fraction are known as pips.