This article looks at the different features of an FX converter.
The FX converter is arguably one of the most useful forex trading tools as it assists in making quick currency calculations. There are various types of FX converts, and to use one efficiently you must be aware of the different styles and their features. It is also important to determine what your trading requirements are and if the FX converter in question meets them.
The currencies available in an FX converter database
The foreign exchange market allows a trader to exchange all global currencies; however, not all FX converters offer the ability to convert each country’s currency. While the majority will offer facilities to convert the major currencies, there are only a few that will extend conversion services to the obscure currencies. This is mainly due to the popularity of the major currencies on the foreign exchange market. When searching for a converter you must determine which currencies you will be trading and whether or not the device is able to convert them.
The location of FX converters
The majority of FX converter services can be located online via converter websites. The high quality websites will present the options of historical and current currency exchange rates, along with additional information related to the different currencies. Certain sites will also provide the opportunity to transfer funds, but this is not seen very often.
The real-time FX converter
When perusing FX converters, you will find that some utilise real-time information and others utilise historic rates as a basis for their currency conversion. The real-time rates converters are the most suitable for forex traders as this ensures that the data is accurate according to the current market.
The currency rate changes
Certain FX converters will offer services beyond that of basic currency conversion. One of these services is the ability to view percentage changes in currency rates. Before you utilise this data, you must ensure it is current and providing you with the correct information. If the information is not up to date, the chances are high that you will be using information that is no longer applicable to the market. The majority of FX converter websites will offer you additional features; however, you generally have to search in order to locate them.
The currency rate changes will usually indicate if the currency price movement is positive or negative. This can be beneficial for both forex traders and individuals who require rates for importation of commodities.
The currency rate charts
The majority of websites offering FX converter services will also offer currency rates charts. These charts should include both currencies you are looking to assess. The charts facility allows you to identify trends in your currency pairing, and with this data you will be able to predict future market movements regarding your chosen currency pair. The information derived from these charts is beneficial as it allows you to identify whether or not you are receiving the best rates possible. It will also allow forex traders to establish the potential spread available.