Beginner Foreign Exchange Trading

Due to the continuous 24-hour operation of international foreign exchange transactions, foreign exchange prices (exchange rates) are constantly changing based on expectations and news flow. Currency is not only a medium of exchange, but also a price that depends on the common economic performance of each country. In foreign exchange trading platforms, the exchange rate is usually defined as the number of domestic currencies per unit of currency (or convertible).

The exchange rate can also be defined as the foreign currency amount equivalent to 1 unit of domestic currency. The exchange rate is considered as 1 USD=1.49 AUD or 1 AUD=0.67 USD. These two quotation marks are opposite. Firstly, the value of currency is expressed in local currency; This is called direct referencing. In the second, display the external value of the domestic currency, which is its foreign currency price; This is also known as indirect quotation.