Its important to know what forex exchange rates really are. To be precise and short in explaination, forex exchange rate is basically the conversion amount settled in for one currency to another. In other words, the value of a base currency in terms of any other currency.
Now one might wonder what a base currency is? well, its simple. If you are living in US, your base currency would be the US Dollar. If you are living in UK, your base currency would be Pound Sterling. Similarly, it doesn’t really matter where you are living, you should be able to identify one base currency and trade with the rest.
Being done with that, you should look out for relatively much stable currencies. Stable currency can only be result of a stable economy along with other economic factors. For that you should have a close eye on the current economic conditions of different countries or the one’s you wish to trade for. When you are done with that too, look for the daily highs and lows. Look for what is the best time to cash in your money. Prepare a dry chart of the trend that the currency is following.
This would give you an idea about the best time to trade. Obviously you can use trading softwares available online but its good to work with your own intution.
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