What are Currency Fluctuations?
The gold exchanger Gold-cash explains it as follows: Our base currency, the currency in which we make all calculations is US Dollars. If your base currency is different, this might mean that you are open to a currency exchange risks. This risk is inherent in all digital currencies, pegged to national currencies. One prime example is Evocash, which is pegged to US Dollar. For example, you send 100 Evos to us and want to get it transferred to your Euro account. Let’s say, that the current EUR/USD exchange rate is 1. Thus, you expect to get 100 Euros less our commission and banking fees. However, when we process your order several hours later, the EUR/USD exchange rate can change. As we convert USD to EUR, we get a slightly different figure. This will mean that the amount you receive can be different from that you calculated. Usually currency exchange rates do not change wildly, but they do change.
Currency fluctuations are simply the ongoing changes between the relative value of the currency issued by one country when compared to a different currency. The process of currency fluctuation is something that occurs every day and impacts the relative rate of exchange between various currencies on a continual basis. It is currency fluctuations that investors in currency exchange deals look to closely in order to generate a profit from their investments. It is important to note that currency fluctuations may appear as both upward and downward movements. When currencies that are purchased by an investor demonstrate an upward movement in comparison to the currencies used to make the purchase, there is opportunity to realize a significant return on the transaction. At the same time, if the rate of exchange remains somewhat flat, or if the base currency actually increases in relative value, the investor stands to realize no return or actually lose money in the deal. There are a number of f
