The Advantages Of An FX Convertor
There are various different types of FX convertors, but ultimately they all fall into two categories: those that make use of real-time exchange rates, and those that use historic exchange rates. When deciding on the FX convertor you will be utilising, it is important to identify which offers you the greater amount of detailed information as this is a significant factor.
The different currencies
Although forex acknowledges that there is a plethora of currencies in circulation worldwide, not all FX convertors offer the support to convert these currencies. The majority of convertors will convert the major currencies such as the Japanese Yen, the Euro, the British pound and the US dollar. This is due to the frequency at which these currencies are traded on the foreign exchange market. However, there are those FX convertors that do support additional currency conversion facilities and can convert over 160 different currencies.
The rate of change
The rate of change feature on an FX convertor refers to the listed percentile changes in the forex rates. This information indicates the movement of the exchange rates and will indicate whether it is a positive or negative progression. This is highly beneficial for those traders who trade foreign currencies, however one must ensure the information is current and relevant to your trades. If the information is ‘old’ or faulty then any analysis conducted on it will lead to disadvantageous trades and detrimental losses.
FX convertor charts
The majority of FX convertors available to purchase offer the feature of rate charts. These rate charts include the currency you wish to convert and the currency which you wish to convert these funds to. This information is beneficial to traders as it provides you the opportunity to see different economic trends within specific countries and for specific currencies. Furthermore, by using this method of analysis a trader can adjust their trading strategy as a more appropriate strategy in the new market. This not only increases the chance of positive speculation, but also improves the possibility of strong investments and trades. This can lead to advantageous interactions and greater profits for the trader.
The FX convertor charts can also be used to determine whether the trader is employing the best broker or financial institution. As a trader is working with their broker for a long period of time, it is essential they are offered the best rates possible. By using an FX convertor he may determine whether the forex rates being offered are the best, particularly if dealing with foreign financial institutions.
The ‘real time’ convertor
While many FX convertors are beneficial to traders and their trading in the forex market, it is the real-time convertors which are most advantageous. The real-time FX convertor uses real-time rates when converting currencies. This means they use the most current data regarding rate of exchange and time of conversion. As a trader is often warned to ensure they are not using previous information when checking conversion rates, this type of convertor is ideal as it eliminates the potential use of ‘stale’ information entirely.