Understanding the b/c Ratio Formula in Forex Trading

The b/c ratio formula is a commonly used tool for forex traders to assess the likelihood of a successful trade. Essentially, the ratio is calculated by dividing the current buying or selling rate of a currency pair by its recent historical rate. The ratio can then be used to identify whether a currency is overvalued, undervalued, or appropriately valued. By using the b/c ratio formula, traders can gain insight into the relative strength of a currency, helping them to make more informed trading decisions.

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