A currency converter calculator is used by traders to calculate the current rates of any two or more currencies. Currency trading is also known as foreign exchange (Forex) and traders must be able to check rates that are regularly updated because the market fluctuates rapidly. Calculators can also be used for other purposes including making international purchases or for other international financial transactions, or when planning travel to a foreign country.
How a currency converter calculator works
Many currency converter calculators are web-based or use the internet to gather rate updates. A web-based calculator is hosted by a service provider who may or may not charge for the service. Age calculator Other calculators that use online connections are downloaded and installed on your computer and use your internet connection to remotely update currency rates.
Most calculators will include 80 to 85 commonly-traded currencies for conversion purposes. Due to the volatile nature of the Forex markets, currency traders are generally day traders and must be constantly aware of changes in rates and market conditions. Many serious Forex investors use dedicated communication links that provide more real-time results, but this option is more expensive.
For those who are just planning a trip abroad, or who are planning to do business with a foreign company, such real-time rates are not necessary. Indeed, the rates can change so much from day to day that the rates must be used with leeway when planning for anything in the future.
Types of currency converters
Not every currency converter calculator works exactly the same way. Although the mathematical calculations are simple and straightforward, the visual presentation of calculators can vary significantly. Basically though, calculators allow you to enter an amount in one currency for conversion into another currency. Some calculators may allow you to convert into more than one currency at a time.
Again, some calculators are web-based while others are downloaded software. The web-based calculators can be free or fee-based and will vary in the frequency that they update their rates. Downloaded software may be designed for your personal computer or for your mobile device. Software for your computer must use an internet connection for the latest rates. A mobile currency converter calculator is great for people on the go and for travellers. Downloaded programs are often in the form of widgets that can appear continuously on your display screen keeping you updated on the latest currency rates.