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It is the aim of foreign exchange to trade one for another in the hope that the market value will fluctuate. Specifically, the value of the money you buy will grow in comparison to the value of the money you sell. A foreign currency conversion factor is just the relationship between one foreign currency and another.
Example: The USD/CHF conversion rates indicate how many US-Dollars you can purchase one CHF or how many CHF you need for one US-Dollar. This is because you buy one and sell another at the same time for each FX deal.
This is an example of an example of an Exchange Rates of the Sterling against the US Dollar: At purchase, the conversion rates tell you how much you have to buy in terms of quotes to buy a basic units denomination. On sale, the conversion rates indicate how many quotes currencies you receive for the sale of a basic currencies sales entity.
51258 US dollar if you are selling 1 GBP. They would buy the pairs if they believed that the underlying will appreciate against the quoted price. If you think that the underlying is depreciating against the quoted price your might want to go short on the Pear.
First you should decide whether you want to buy or buy. When you want to buy (which actually means buying the basic and selling the exchange rate currency), you want the basic to appreciate and then you would resell it at a higher rate. When you want to resell (which actually means selling the basic and buying the rate currency), you want the basic to lose value and then you would buy it back at a lower rate.
Think only of it: Shorts = selling. In most cases the offer is lower than the ask rate. Offer is the amount at which your brokers are willing to buy the basic foreign denomination in return for the quoted one. That means that the offer is the best available prize at which you (the trader) will be selling to the auctioneer.
Ask is the amount at which your dealer sells the basic foreign denomination in return for the quoted foreign denomination. That means that the ask rate is the best available rate at which you will buy on the open auctions. A further answer to questions is the quoted retail prices. SPREAD is the popular term for the differences between buying and selling prices.
At the above EUR/USD quotation, the buying rate is 1. 34568 and the selling rate 1.34588. See how this brokers makes it so simple for you to exchange your money. When you want to yourselves EUR would like to yourselves you click on "sell" and yourselves you euro to 1.34568-sells.