Currency Rate (Currency Prices)

The objects and determine the prices of commodities currencies, we say that the price of car $ 15,000 or that the price of T-shirt $ 20, the currency prices also determine the other currencies that we say the dollar price of 120 yen or 3.75 to the dollar price of Saudi

The price of the currency against another currency is determined

Buy and sell currency:

When you buy currency you necessarily sell a currency against which other, when you get on a currency against which you pay another currency, obtained by The currency is the currency you are buying .. And the currency paid for it is the currency they sell.

For example, when you get the U.S. $ and paid interview euros say you bought a dollar and sold the euro, and vice versa When you get to interview the euro and pay U.S. $'s say you bought the euro and sell the U.S. dollar.

In order to get the currency against which they must pay another currency, Currencies are bought and sold in pairs (Pairs).

The currency is obtained by buying the currency and the currency that paid for it is the currency they sell.

Purchase of currency is to sell the currency against which other, and the sale is to buy the currency to another currency for them. Whatever the currency

High and low exchange rates:

When demand for a commodity, the price goes up, and when the fall in demand, the price fall, when more than willing to buy goods on the number wishing to sell will increase price and when there are more who want to sell a commodity on the number wishing to purchase them will drop the price, this is called the law of supply and demand Supply and Demand.

This law applies to currencies as it applies to any other commodity, if the number of buyers of a currency more than the number of sellers, the price of the currency rises, and if the number of sellers of a currency more than the number of buyers, the price of the currency decline.

For example: If the euro is equal to $ 1.40, it required you to pay $ 14 for ten euros.

But if there was a lot of people want to buy the euro, the price will rise and will reach $ 1.45 then to $ 1.50 and so on, the greater the number of people willing to pay the dollar for the euro the greater the rate of the euro against the dollar.

Meaning the price of the euro that you will be required to pay a greater range of the dollar for the euro, which means that the euro rises and the dollar declining an interview.

The high price of currency is the low price of the currency that matched, low price of currency is the high price of the currency offset.

When the price of Euro = $ 1.40 means that we are required to pay $ 14 for ten euros, and when the price of Euro = $ 1.50 means that we are required to pay $ 15 for ten euros, and this means that the euro rose against the dollar or the price of the dollar fell against the euro.

But when the price of Euro = $ 1.20 means that we are required to pay $ 12 for ten euros, and this means that the price of the dollar rose against the euro or the euro fell against the dollar.

So: the high price of currency is the low price for the counter currency necessarily, and that the low price of currency is the high price for the counter currency necessarily.

There are several reasons for people to buy currencies of other countries, such as used for the purpose of import, investment, travel, If the number wishing to trade or investment, or travel to the State will increase the demand for currency

Another category of people who buy coins and sell them such as the trade for profit and they Speculators Speculators in the market of world currencies Forex, They buy currencies, not to be used to buy something, but to sell when they rise the price to make a profit out of it which they are dealing with the currency as a commodity not as a tool exchange .

As the currency goes up and down all the time, they are always looking for currencies that Victroha expect high prices and then sell them at a higher price for profit

So they can achieve a lot of profits, buy and sell currencies at a higher price Fahakqon profit, or sell currencies and buying back at a lower price Fahakqon profit. We are these speculators,

Job by searching for a currency we expect to increase their price Venctrea When rising price we will sell them at a higher price and get the profit, or we will search for the currency of what we expect to have reduced the price Venabieha the high price and when the lower price we buy at a lower price, and keep the difference as profit, and repeat this process continuously.