POSTED BY October 6, 2010 9:00 pm COMMENTS (2)
ONI always wonder how the currency rates between countries work and how they are managed & Valued?.
For Example
Today
1 US Dollor = 44.49 Indian Rupee
1 US Dollor = 30.96 Taiwan Dollor
1 Taiwan $ = 1.437 Indian Rupee
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It’s a complete separate market – Forex like any other exchange – Stock exchange etc. You buy or sell currencies like you buy or sell shares. And the price of these currencies goes up or down depending upon demand & supply rule.
Get a free demo account with any online forex broker & see yourself. This is the most interesting market.
Hope it will help you.
InvestmentKit
when you trade currencies your just actually exchanging them … you buy a currency and sell another .. you buy 1 USD and sell 44.49 INR for that .. so if the USD strengthens then 1 USD can buy more INR … thats how money is made and lost … when coupled with leverage ( upto 500 times capital ) the returns can be astounding … such large leverage is given because positions can be easily closed when they cross margin limits because of the liquidity available .. abt 2 trillion $ is traded in the forex markets daily …