A quotation is the value of a product, declared directly by the seller or his buyer. In this case, commodities can be: raw materials, metals, stocks and even currency. Accordingly, online exchange rates are the price of one base currency, which is expressed in units of another, the one that is quoted.
How do operations in the foreign exchange market take place?
If we describe the scheme by which currency is traded on the market, then it will be as follows. A trader uses a special program to view the current exchange rates online. After he has done a preliminary analysis and made a final decision to sell or buy, he submits an application to open a special trade position. It goes to the broker’s server, after which the broker, based on information from liquidity providers, immediately gives the trader a result.
An executed transaction can have a completely different nature: positive and negative (with profit or loss). Further, by observing the quotes of currencies online, a trader can quickly make a decision to close the deal. This can be done automatically or manually.
What can affect currency quotes?
Currency quotes on the online market are of great importance not only for ordinary people and businesses, but also for people who carry out currency transactions in the stock market. Every day, millions of traders view currency quotes online in real time to assess their risks and choose the right moment to buy or sell currencies. The skill of analyzing the current situation in the foreign exchange market and the ability to make predictions about its state in the future is very relevant. And in order to make profitable trading on the online currency exchange, it is worth taking into account the following factors that affect the exchange rate:
- Geopolitical events: unstable political situation, wars and revolutions, split of the country or frozen conflicts;
- Force majeure situations: floods, earthquakes, various natural disasters that are not controlled by humans;
- The policy that central banks adhere to – it is the Central Bank that is the key institution that maximally influences the rate of the national currency. It is he who implements monetary policy and can quickly influence the change in exchange rates on the exchange online using tools such as: interest rate fluctuations, money emission, quantitative easing, open market operations, etc.
Also, online currency quotes may change in the event of macroeconomic changes: inflation, GDP, unemployment, government debt, the country’s balance of payments, imports and exports of goods and services. All this is negatively reflected in the dynamics of the exchange rate.
On our website, you can make successful transactions with currency pairs on the MetaTrader 5 platform. Our servers are located in large data centers in New York and directly interact with the largest banks in Europe. And before making a deal, you can look at the charts of exchange rates online and make the right decision to buy or sell.