$50
3 pips
$50
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Currency Valuation Considerations
The worth of a currency in the forex market is generally expressed in relative rather than absolute terms. Accordingly, the value of the currency of each nation will be quoted relative to that of the currencies of other nations in currency pairs. Furthermore, this market valuation responds sensitively to long-term economic and interest rate cycles.
Although economic theorists might postulate that forex market rate fluctuations form an essentially random walk through time, and some even use this hypothetical assumption when developing theoretical currency option pricing models, almost any cursory review of a chart of a currency pair
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