KNOW THE BASIC KNOWLEDGE ABOUT FOREX BUSINESS
Perhaps you have done an international business before; you have certainly exchanged foreign money in that process. Have you ever wondered that you can have your own forex bank account and that you can change your money at a rate cheaper than that of a bank?
Well, in this write-up you will learn how to aim at a good forex rate just like a skilled business man.
At first as a beginner, it will be hard for you to understand some forex languages and terms but we will make it simple for you by explaining them here.
A legal tender can be referred to as a type of cash which is generally recognized by people. For example, America uses dollars while European countries use Euro. These different types of money are competing against the other in the global financial market. These currencies do rise and fall due to activities in global trade.
Forex is a short term used in the business of foreign exchange. It is important to know that each type of money represents the countries where they come from. Also, Foreign Exchange rate/price means changing different foreign cash to another one.
For you to know how forex rate is being estimated, we shall start by checking a particular forex deal which you may have carried out some time ago.
If you carry out a forex business, the forex broker you involve will inform you about the worth of your type of money against another one and how much he will buy it.
For example this exchange rate/price of POUNDS/YEN = 2.7824 shows that Pounds will buy 2.7824. If you are a British citizen and you’re planning to visit Japan, be rest assured that the rate we just analyzed earlier will be applied to you, meaning that Pounds will buy Yen at 2.78.
Also, if you’re returning from Japan and you discovered that you didn’t spend all your YEN and you need to change it to POUNDS, the transaction you’ll now have to do is to sell the YEN in order to buy the POUNDS.
Foreign Exchange Rate Stand
In a financial organization, you will always see an electronic board indicating different types of currencies and how much each of them costs against the local currency. If for example the electronic board displays that you can purchase EURO at 74.12 and sell at 77.32 it shows that each EURO costs 74.12 and if you want to sell, you will make use of the displayed selling price.
So, this is how the electronic board is helpful in indicating what a local currency will be used in buying foreign currencies.