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Different countries of the world have different currencies and how the different currencies are related with one another is determined by using exchange rate system. Say there is a currency called X1 and there is another currency called X2. Now you find that the exchange rate of X1, X2 pair is 2. This means that you can exchange 1unit of X1 currency with 2 units of X2 currency. This is the way by which any of the currency can be exchanged into any other currency while engaging in Forex trading.
How to convert currencies while doing Forex trading?
There are many currencies in the world but there are 8 major currencies which are traded mostly as compared to other currencies. The 8 major currencies of the world are:
US Dollar (USD), Euro (EUR), Japanese Yen (JPY), British Pond (GBP), Australian Dollar (AUD), Swiss Franc (CHF), Canadian dollar (CAD) and New Zealand Dollar (NZD). Most of the Forex trading is done within the pairs formed with these major currency pairs. In order to see the exchange rate of any currency in terms of other currency, we use Forex currency converter for this purpose. In a FX currency converter we simply put the currency to be converted in the first field and then select the name of the currency in which we want the conversion. After clicking “Convert” option, the conversion is done and we can see how many currency units of second currency can be used to exchange 1 unit of first currency.
Benefits of a Forex currency converter
Foreign exchange conversion is needed in every transaction we do internationally. For example if we are planning to visit a foreign country, then it is obvious that our local currency will not be accepted when we purchase anything in the country we visit. Therefore it is important for us to get the money we have exchanged into the currency of the country we are going to visit. For this reason we need a Forex currency converter to find out the exchange rate of our currency with respect to the currency of the place we are going to visit. Then only we can understand how much money we need to get converted into foreign currency before we start our foreign tour.
Another great advantage provided by a Forex currency converter is the benefits it provides to traders in Forex trading. A trader’s job is to place trades in the Forex market which is simply buying and selling of foreign currencies. But the most important and crucial thing in Forex trading is to know the exact conversion rates of one currency with other and in this regard Forex converter is very useful. A reputed converter makes a trader on top of all the foreign currency fluctuations and an active trader can make a right trade on the exact right time using the exact exchange rate with a live currency converter.