What are the exchange rates?

yen, euros and dollars are all types of currency. Exchange courses relate to purchasing, sales or money transfer prices. If one currency is not linked to the other, the exchange rates are constantly in the flow. Because these rates can change and thus affecting the values ​​of different currencies, many people turn to the foreign exchange market (FX) as a means to make profits.

Without shift courses, international trade would be very difficult. It would also be very difficult for a person from one country to travel to any other country that uses another currency. These problems would arise from the fact that only one type of currency is widely accepted in most countries. Without this type of currency, transactions cannot take place. Without shift courses, there would be no system to provide the value of one currency compared to another. The money. The party that has the required currency and provides it with a party that wants it in exchange for another type of currency is a seller. The exchange is usually made on the basis of an internationally recognized price known as a exchange rate. For example, 10 EUR can buy 1,000 yen.

Although according to the current exchange rate of 10 euros should buy 1,000 yen, it may require 12 euros to get 1,000 yen. The other two euros are likely to be commission and a fee. Such fees are often added to the exchange rate to provide profits to those who provide stock exchange services.

When one currency is suspended on the other, there is a fixed exchange rate. For example, if it was only linked to the euro, 1,000 would always be equal to 10 euros. However, most currencies are not bound, which means that their value is constantly fluctuating. Exchange courses can move in F or against any particular currency that is reflected in profits and losses, depending on the currency that the person has and when it exchanges it.

Consider the above example where the person exchanged the euro for Yen for 10,000 for 1,000. If only strengthens, this individual can take 1,000 yen back to the exchange point and mcan buy 15 euros. This happens when the exchange courses fluctuate in a way that makes one currency more valuable than before, and another currency less valuable than before.

Since the currency value fluctuates in this way, many people become FX traders. The aim of these individuals is to take advantage of exchange courses for their advantage. Their aim is to buy currencies and sell them for other currencies at a time when profits can be achieved.