Currency Converter - Exchange Rate Calculator for Trading
How much is 1 Dollar to your currency and vice versa? This currency converter automatically counts the exchange rate based on the current rate in the market. Just put the value you need to convert from one currency to another and get the result.
Why is EUR/USD an important currency pair?
US Dollar, the United States of America's currency, by itself, is the most traded currency in the world. Of course, the USD is the world's reserve currency, so it is very influential. Meanwhile, the Euro is used by the European Union and serves as the national currency in 19 of 28 EU countries, making it the second biggest currency in the world after USD.
EUR/USD has been the most traded currency pairs in the world for several years and is one of the favorites among forex traders. The main reason for the latter is because it is an actively traded pair with moderate volatility which makes it compatible for either scalping or day trading. There are always enough movements to take daily profits, especially at times around the release of fundamental news.
Continue Reading at EUR/USD Fundamentals and Trading Tips
What is the risk of hedging the same currency pairs?
If the price moves erratically and you don't see any confirmation until it is too late, both stop losses might be touched, and you might gain double loss compared to if you did not hedge, as much as the gap between both positions. Few traders are able to do this successfully, so it's not widely recommended for new traders.
Continue Reading at Introduction to Forex Hedging Strategy
What is the risk of hedging different currency pairs?
Inter-pair correlation changes occasionally. For example, USD/JPY and AUD/USD could have a high negative correlation, but they might change in the next day or week. The correlation might weaken or turn fifty-fifty.
Continue Reading at Introduction to Forex Hedging Strategy
How to interpret fundamental aspects when analyzing currency pairs?
For example, USD seems to be going strong because of some economic data are better than ever. However, you later found out that instead of going downward, GBP/USD holds out and then moves upward! Well, it might be that the GBP is fundamentally stronger than the USD.
A strong currency does not mean that the currency will emerge as the overall champion in the forex market. Remember that currencies are traded in pairs within a globalized forex market, which mean: influential fundamentals come from both sides and more.
You should not only observe fundamental dynamics of one or two currencies but also global market dynamics. Prices are determined by supply and demand in that market, so you should think about market sentiments too.
Continue Reading at Three Reasons Why Your Fundamental Analysis Does Not Work
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