Forex Indicators

what factors are considered by commercial banks and the forex shops in fixing the daily exchange rates?

Public Comments

1. Well of course one main factor they consider is generating a profit! What they do is they take the currency rate; it is usually active - and not fixed. They then put a spread between the buy and sell price - this is how the forex dealers make money. Say if you bought US with your currency then sold the US back instantaneously you will find that you may have lost .5 to 3c per dollar or maybe even more because of the spread.