Most Forex converters are pretty straightforward and easy to read. Currencies are usually traded in pairs and most Forex Converters give current quotes in pairs. Most also have the ability to convert specific amounts of one currency into another. But what are the factors that make one currency more valuable than another? What causes the value of a currency to rise and fall?

First, who determines currency value? Currency value is generally determined by central banks, investors and Forex traders, and the laws of supply and demand. Central banks and large banks account for most of the world’s trade in currencies. Central banks set monetary policy that affects the value of that nation’s currency.

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Simply put, a Forex Converter is a program that gives the value of one currency against another in real time. There are literally thousands of converters online all with the same function. Most of these converters are easy to use and list all the world’s currencies. Years ago exchange rates were only available from major banks but since the introduction of the internet exchange rates are instantly available. Many years ago rates were posted once a day even though there may have been many changes in exchange rates throughout the day.

Today banks, Forex brokers, and individual small investors have access to current exchange rates in real time. Generally Forex converters have two sections, one for the base currency and the other for the currency being exchanged. There is usually a box where a currency amount is entered and then the currencies being exchanged from and to are selected usually from drop down menus listing all the major currencies. Many Forex converters offer both the interbank rate and the cash rate. There are literally millions of Forex converters available on the internet.

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