This currency calculator is a great tool to convert any amount in a given currency to your desired currency. There are a couple of options to try and you can even calculate the rates in a different currency with your own exchange rates. This certainly makes the currency calculator an effective currency conversion tool.
Years ago, a vast majority of currencies from around the world didn't have any backing for supporting their value. Silver, gold and different other means were used to back many of the currencies at a time - governments which had paper currencies in use did the same as they maintained some kind of support against it.
However, that doesn't apply to most currencies anymore. The value for US dollar, British pound, ruble, Brazilian real, Swedish Kronor, and many of other major currencies, can now be determined by trading them on international FX market.
International Forex market works on all days between Sunday night and Friday night without any breaks. Huge volumes of money are traded in the market. While trading dollars for Swiss francs, or rubles or any other currency of their choosing, they determine how much the value of these currencies should be. Now, that's exactly what exchange rate refers to. It is the rate you get for exchanging a particular currency for the other. This being the reason Forex rates are expressed in the form of different currency pairs. For example, EUR/USD refers to Euro/US Dollar. It means the number of US dollars you’ll get for one Euro.
When a person goes out there to buy some foreign currency, there are a couple of prices listed. These prices are buying rate and selling rate or some call these bid price and ask price.
So, if you're visiting some exchange broker or the back for buying some foreign currency, you'll have to pay Selling price or ask price. It is usually higher than buying price.
On the contrary, if you have a little amount in left over in the foreign currency and you are looking to sell that to the broker or the bank, buying rate or bid price will apply here. Keep it in mind that buying rate is always displayed before selling price and it is lower than the selling price.
As mentioned earlier, the currency calculator here gives you a couple of options. The first one lets you calculate currency value using live exchange rates. You just have to enter the amount in one currency that you want to convert in the other and select the two currencies for performing the conversion. Once you have entered the required values, just hit the calculate button and the currency calculator will show you how much given amount in one currency is equal to in the other currency.
The second currency calculator works by calculating the converted values according to the exchange rate that you mention explicitly. You have to enter the amount in currency B that equals 1 unit in currency A. After that you have to enter the amount that you want to convert. Finally, hit the calculate button and the calculator will perform the calculations for you. It will show you how much entered amount of currency A equals that of currency B and vice versa.
So, if you have to perform any currency conversions, you can use this currency calculator to get the accurate results. Either of the two calculators on the page can be used as per your convenience. It, basically, depends on what input values you have got to be used in the currency conversion process. So, choose your calculator accordingly.