Posted by forex at 2:58 AM
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1. Look at the foreign exchange chart to see the currencies being compared to one another. The currencies are often paired---with the first portion being the base currency and the second portion being the terms currency. For example, EUR/USD indicated that the base currency is the euro while the dollar is the terms currency.
2. Determine the equivalency between the pairs. The base currency is listed as '1' while the terms currency will constantly be changing. For example, EUR/USD 1.575 indicates that for '1' in euro currency the dollar equivalent is 1.525.
3. Watch the currency chart closely if you want to buy a pair for later trading. An ideal time to buy would be when the base currency becomes stronger over a terms currency, and the ideal time to sell a pair is when the base currency is weaker than the terms currency.
4. Observe the currency chart constantly since it is always changing over a 24-hour period. Look at the time zone in the exchange provider. For example, if you are watching currency in pounds, it is most likely showing a time zone for Great Britain.