Exchange Rate
The price of one currency expressed in terms of another.
Quick answer
The exchange rate is the price of one currency expressed in another.
Definition
The exchange rate is how much of one currency you get for another, such as how many dollars one euro costs. It is the price that every forex trade is built on. Rates move with interest rate expectations, trade flows and economic data.
How It Works
- It is the price at the centre of every pair
- Rates move on rates, flows and data
- Every currency has a rate against every other
Trading Tips
1
Read the rate as a price, not a constant
2
Know which currency drives the pair you trade
3
Expect the biggest moves around rate decisions
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