Learn how to convert currencies and note the difference in values, when you begin trading on Forex, as well as how currencies are exchanged between international lines. This means studying not only foreign markets trends and currency values, but also those of domestic market trends and currency values.
In this configuration, 2 currencies are listed in an AAA / BBB ratio, AAA referred as the base currency, while the BBB position is expressed as the decimal that most closely matches the based currency rate.
For example, one US dollar may be equivalent to 109.617 Japanese yen, so this ratio would be expressed as 1.000/109.617. Often only the decimal portion of the number is mentioned in the Foreign Exchange Market beacuse the currency in the .BBB position in terms of conversion changes so infrequently. In the ratio above, you may see that the Japanese yen is trading at .617, with no mention at all of the 109 whole yen that is shown in the ratio. Exchange rate may vary from 109.617 to 109.573, but not to 112.573.
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