The exchange rate

The exchange rate

Essential to getting the forex trading is the proper understanding of the concept of the exchange rate.

Fixed Exchange Rate Between Currencies
By definition, here in the relative value of two currencies to one another is understood. Symbolic - but strictly speaking, 100% correctly - called the exchange rate, the amount of any currency required to purchase a unit of any other currency or to sell.
When used in this context of mating, so the exact meaning of this relationship. A pair EUR / USD = 1.2020 means that you will get one Euro for 1.2020 U.S. dollars.
In this example, the pair EUR / USD is used. The entire course can be seen from the other side. Then press the pairing of how one gets to € for $ 1. Equivalent to our first example is the USD / EUR = 0.8319.


FXdirekt Bank AG - Currency Trading

The basis of most foreign exchange transactions, the U.S. dollar. If a pair without the participation of the dollar is given by the so-called cross rate is an issue. The pairing EUR / trafficking = 45.80 states, for example, € 1 may be exchanged for 45.80 Thai Bath.