What is Forex exchange rate ?
Forex exchange rate means conversion rate of one currency to other currency rate. all other articles about What is Forex.
Forex exchange rate is one of the most important concept that you should know for earning money. Generally, forex exchange rate means conversion rate of one currency to another currency. For example, exchange rate of 0.90 Eur to Usa Dollar expresses that 0.90 Eur can be exchanged for 1 American Dollar. In this point, Us Dollar is the base currency. In other words, Forex exchange rate is the price of a currency in terms of different curreny so it is between two different forex currencies.
Forex exchange rate is determined by foreign exchange market. As we mentioned about it in other topics, different types of buyers and sellers from all around the world meet in Forex market and trades continue 24 hours but the weekends.
Forex exchange rate may depend on several things. Such as, demand for a currency and their supply can be related. Besides, political factors and a country’s trade balance can affect forex exchange rate.
In this point, as we mentioned about before, foreign currency stands for base currency and domestic stands for counter. Generally exchange rates use American Dollar as a base currency.
Exchange rates can be changed depend on different things,however it can be fixed. In this point, in forex market, American Dollar generally is preferred. So, countries fix their domestic currencies to Dollar.