If you are new to forex trading, currency conversion can be overwhelming. The terminology alone is enough to make a beginner’s head spin. However, learning the Forex lingo and understanding the process of currency conversion can put you ahead of other traders who never learned these important basics. Here are some tips for forex trading that’ll help with a smooth first experience.
What is Forex Trading?
Forex trading is the buying, selling and exchanging of one country’s currency to another. Currency is available in different forms such as notes, coins and electronic money transferred immediately between bank accounts. Currency can be traded, bought and sold without boundaries to anyone anywhere in the world.
Here are 3 tips for forex trading:
Tip 1: Never Buy Something You Don’t Understand
You might see that a currency is growing astronomically fast, or that it did really well in the past, but if you don’t understand why that’s happening, it’s best to steer clear from it. While sometimes following the trend might work, over time you’ll probably end up losing money. What I’d recommend is looking up why it did so well, so if you see that situation happening again you’ll be able to recognize it on time.
Tip 2: Start Small & Work Your Way Up
Begin by focusing on a small number of currencies, and then gradually expand your horizons over time. You’ll probably want to start with the US Dollar and the Euro since they’re some of the most frequently used in business transactions. As you get more comfortable with how each works, consider adding some other major currencies like Pound Sterling and Yen.
Tip 3: Go Digital!
While you can certainly track currency rates manually (we won’t judge), you might save yourself a lot of headaches by using an online service to do it for you. Currency conversion apps are available for nearly every major operating system, so there’s no excuse not to have this at your fingertips.
With an exchange rates API, you can find out what the current mid-market exchange rate is. You’ll be able to detect a good trade and avoid losing money this way. We recommend you try out Exchangr.
Why should you use Exchangr?
Exchangr is a REST API that uses the JSON data format to deliver accurate currency exchange rates and conversions to consumers and businesses.
In short, the API provides five endpoints that may be customized for different operations.
- The live endpoint displays current currency rates.
- Historical currency rates are the historical endpoint.
- Multiple currencies are supported via the convert endpoint.
- Over a certain time period, the time-series endpoint exchange rates
- For every currency, the fluctuation endpoint returns change parameters.
The Exchangr API accepts 164 currencies from all around the world, as well as 8 cryptocurrencies. They combine data from a number of commercial forex data providers and institutions using an algorithm. They do, however, update the data on a frequent basis, at intervals ranging from 60 minutes to 60 seconds.
Are you ready to receive free foreign exchange rates?
As a result, the Exchangr REST API endpoint has a variety of currency information. This may be used in any programming language and on any platform. Here’s an example of how you can go about doing it. It demonstrates how to convert any live currency into USD, GBP, or Euro. The Exchangr REST API may be used in scripting, online, and desktop applications.
You may also utilize the free tier on Exchangr. If you want more API calls per month, we strongly advise you to upgrade your membership level. You may also reach out to them for a more personalized solution. We can’t wait to see what you can do with a Forex API!
Related Posts:
The Best APIs To Get Historical Forex Rates
Also published on Medium.