Currency converter
Use our free calculator for easy currency conversions.
Currency converter title
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How do currency rates work?
Currency exchange rates work by comparing the value of one currency against another. Traders speculate on changes in currency exchange rates, taking positions based on whether they expect a currency pair to rise or fall in value.
Widely traded pairs include EUR/USD, which tells traders how many US dollars are required to buy one euro. If you go long on EUR/USD, you would be hoping for the euro to strengthen and the US dollar to weaken.
To inform trading decisions, forex traders often stay on top of fundamental market events that can affect currency prices and undertake technical analysis governed by prior data. Learn more about forex trading via our comprehensive education section.
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