Exchange Rates change constantly over the second!!The change can be either higher or lower.If the price of the euro against the dollar EUR / USD = .98Then became the EUR / USD = 1What does this mean?We were first required to pay the price $ 0.98 for one euro.Then we are required to pay the price, the second $ 1 to get one euro.This means that we have become required to pay a greater volume than the dollar for euros, the euro became the most expensive and most valuable.This means that the euro rose and the dollar fell, as the high currency is reduced to the corresponding currency necessarily.If the price of the pound against the dollar, GBP / USD = 1.3Then became the GBP / USD = 1.5What does this mean?This means that the pound rose and the dollar fell.Because we are the first price we were required to pay $ 1.3 for one pound, the price, so we started the second required to pay $ 1.5 for one poundWe are now required to pay a greater volume of dollar for dollar, ie, that the pound has become the most expensive and most valuable.Which means that it rose and the dollar fell.Always remember: the price is the amount required payment of the second currency for one unit of base currency.Take more examples:Example 1The euro against the dollar was: EUR / USD = 1Become: EUR / USD = 1.01Is the euro rose or fell?Answer: The euro rose and the dollar fell because we are required to pay a greater volume than the dollar for one euro.Example 2The euro against the dollar was: EUR / USD = .95Become: EUR / USD = .90Is the euro rose or fell?Answer: the euro fell and the dollar rose because we are required to pay how much less than the dollar for one euro.Example 3Pound against the dollar was GBP / USD = 1.6Become: GBP / USD = 1.2Is the pound rose or fell?.Answer: We have dropped the pound and the dollar rose because we are required to pay how much less than the dollar for one pound.Example 4Pound against the dollar was GBP / USD = 1.6Become: GBP / USD = 1.69Is the pound rose or fell?Answer: We have increased the pound and the dollar fell because we are required to pay a greater volume than the dollar for one pound.And thus become unaware of whether the direct exchange rate has risen or fallen.And now ..Ovrdhana for the price of the dollar against the yen was the USD / JPY = 125Then become: USD / JPY = 120Is the yen rose or fell?We have been required to pay 125 yen for one dollar.We are required to pay 120 yen for one dollar.We are now asking how to pay less than the yen for dollars and any one that the yen has become too precious to get the quantity of less than a dollar and this means that the yen rose and the dollar fell.Remember that price is the amount to be paid from the second currency for one unit of base currency.The base currency is the U.S. dollar against the yen and the franc.
Even if we assume that the price of the dollar against the yen, the USD / JPY = 125Then become: USD / JPY = 130Is the yen rose or fell?Answer: The yen fell because we are required to pay how much greater than that for one dollar means that the dollar has become the most valuable and the most expensive and as long as the dollar has become the most valuable of any that have increased the yen has fallen.As you can see it in front of the yen and the franc reduction are high figure means that the number refers to the dollar, which is the base currency if the dollar fell yen or the franc.Take the examples:Example 1Dollar against the yen was: USD / JPY = 126Then become: USD / JPY = 128Is the yen rose or fell?Answer: The yen fell because we are required to pay how much greater than that for a dollar so doing, the yen has fallen and the dollar has risen.Example 2Dollar against the yen was USD / JPY = 127.8Then become: USD / JPY = 127Is the yen rose or fell?Answer: The yen rose for the price that we have come in the last asking how to pay less than the yen for dollars and thus the yen has risen and become more valuable and the dollar has fallen.Example 3Price of the dollar against the franc was: USD / CHF = 1.42Then become: USD / CHF = 1.40Is franc rose or fell?Answer: The franc rose because we were required to pay 1.42 francs for a dollar, but now, so we started asking how to pay less for 1.4 francs to dollars, it means that the franc has become the most precious rose and the dollar has fallen.Example 4Price of the dollar against the franc was USD / CHF = 1.62Then become: USD / CHF = 1.78Is franc rose or fell?Answer: We have dropped the CFA franc and the dollar rose because we are required to pay a greater volume of CHF for one dollar.And thus became know whether the price has risen or fallen in indirect exchange.It is important to the extent that you know the difference between the price in the currency price in direct and indirect currency.General ruleIf the price rose against the pound or the euro means that altitude and the low dollar.If the pound dropped against the euro or the meaning of this reduction are high dollar.And vice versa for the yen and the francIf the price rises against the yen or the franc, meaning that reduction are high dollar.But if the yen dropped against the franc or the meaning of the altitude and the low dollar.The reason for this is that the base currency are the pound and the euro against the dollar, either against the yen or the franc The currency is a dollar basis.As you know, price is the amount required payment of the second currency for one unit of base currency.As mentioned, it is important to know whether the currency has fallen or risen because if you did not realize it was a good buy at a time that you want to sell it and vice versa!!.Anyway .. If you find some difficulty in understanding the difference, do not worry ..A little practice, things will become very easy for you.Save only the former base
0 comments:
Post a Comment