Posted by forex at 3:58 AM
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1. Ask the person with whom you're negotiating where he lives and what currency he transacts in the most. Understanding this will help you figure out what type of transaction is most beneficial for the other person.
2. Research the exchange rate between euros and the currency preferred by the person with whom you're transacting. Enter your currency, and euros, into a search engine for conversion rates. For example, if you transact in U.S. dollars, enter '1 USD in euros' into a search bar.
3. Contact your local bank and ask the rate at which it will exchange euros for the preferred currency of the person with whom you're transacting. This will be a different, and usually worse, rate than the official exchange rate you found on the search engine.
4. Ask the person with whom you're transacting if he will give a discount based on the official exchange rate. Point out that he will save the difference between the official rate and the bank rate.
5. Monitor exchange rates on a daily basis. Execute the transaction only when the exchange rates fluctuate to a level that is beneficial to you based on the currency in which you prefer to transact. For example, if one U.S. dollar buys 0.8 euros now, but one U.S. dollar has historically bought one euro and you believe that the exchange rate will return to historic levels, wait before making the transaction.