There are plenty of tools that you can use in foreign exchange trading, all brought to you by modern technology. You no longer have to call your forex broker in order to get the latest currency rates and prices. You can simply go online and get your live rates no matter what currency you have in mind. In your forex trading activities, you can make use of an online currency converter that is hooked up to the same live currency values that your forex broker is hooked up to. It is important for you to get the same conversion rates as your forex broker as the rates can vary from one source to another. Although the difference is normally not more than a couple of units of currency, it can add up to a big amount when you are talking about transactions in larger amounts.
The online currency converter tool becomes most useful when trading currency pairs in currencies other than your account currency. In most cases, the trading account currency that traders choose is USD since it is the most widely acceptable worldwide. There are, however, instances when traders choose to trade pairs not involving the USD. With a conversion tool, you can compute for the exact amount that you have to have in your trading account in order to purchase a pair. Similarly, you would use the same tool to check how much you would get when you sell the same currency pair later on. Converting your capital and profit into your trading account denomination is the basic function of this online tool.
You can also use the online currency converter to check how much equity you have to put up in your account in order to trade on a specific leverage. Margin-based leverages will tell you how much more than your equity you can use to purchase currency pair lots. Converting to your trading account denomination and then to your base currency and to other currencies that you wish to purchase is made much more convenient with an online conversion program. With this tool, you do not have to worry about pencil pushing and being confused about your figures. All the numbers that you need in your conversions are already displayed in their respective labelled boxes on your computer screen.
Make sure that the online currency converter and other tools that you choose to use in your forex trading come from reputable sources and can be trusted to give you only accurate information. You do not want to make a mistake in your trading decisions just because you were not able to get the right information. Every single figure that you get from your online calculators are important in helping you evaluate your trades. You can use these tools to determine if you are financially ready to assume the risks in particular trades to enjoy a perceived rate of reward. Likewise, these tools also help you figure out how much of a boost your trading account requires in order for you to fully maximize the yield potential on a specific trade.