Exchange rate history tools allow Forex traders and investors to find out how the prices of different currency pairs have moved over a specified time period. These tools can be all types of Forex traders and can be very useful.
By using a historical exchange rate tool, you will be able to find out how the price(s) of the particular currency pair(s) that you are trading have moved over a time period that is relevant to your Forex trading strategy. For example, if you have a shorter-term currency trading strategy and you are trading GBP/USD, you might use a history rate tool to find out the GBP/USD currency pair’s price action over the past 7 days – or perhaps over the past 24 hours.
Different history rate tools will present different possibilities. For example, one might only allow you to specify a time period of 7 days minimum, whereas others might allow you to look at the price actions of currency pairs over the past minute, or even over the past few seconds. Also, some of these sorts of tools will allow you to see the price actions of multiple currency pairs simultaneously.
Historical currency pair price data can be useful, as it can allow Forex traders to discover trends and patterns, allowing them to spot more potentially profitable opportunities. This is why it can be very beneficial to use exchange rate history tools, particularly if you enjoy taking advantage of trends. If you use a longer-term Forex trading strategy, you will definitely want to take advantage of history rate tools; these types of tools should be taken advantage of by all Forex traders, but if you are only looking to ride long-term trends and make profits in the long run, you will no doubt want to take advantage of historical currency pair price data.
You should beware though when using a historical exchange rate tool, that the prices you will see won’t necessarily reflect the prices on your Forex broker’s trading platform. Brokers will have different spreads, meaning the prices can potentially differ a lot across different brokers. If your broker doesn’t provide fixed spreads, you should definitely consider signing up to a different broker instead, but some brokers will even have floating spreads which will allow the prices to differ even more.
Ideally, you should use a history rate tool that is located within your trading platform, that is provided by your Forex broker. This way, you can be confident with the prices that you see, as they will reflect the actual prices that you are given when trading. This will allow for much less confusion, when trying to spot trends and patterns in the Forex market.
In conclusion, exchange rate history tools can be very useful and beneficial to all types of Forex traders; it doesn’t matter if you have a short-term or long-term trading strategy, as you can take advantage of history rate tools no matter what. There are plenty of these kinds of tools on the internet available for free and they are very simple to use too. However, it is recommended that you use a history rate tool that is located with your trading platform, as you can then be sure that the prices you see will reflect the prices which are given to you by your broker, allowing for less confusion.