Categories: Financial

What Is Financial Ratio? – An Intro to Forex Trading

Financial ratio forex is a tool used by traders to evaluate the performance of a currency pair relative to its peers. Financial ratio analysis involves comparing different metrics that measure the performance, liquidity, and profitability of a currency pair. Commonly used financial ratios include the simple to calculate price/earnings, debt/equity and return on investment ratios. By analyzing these ratios, traders can quickly assess the relative performance of a currency pair and decide which currencies they want to invest in. The financial ratios used in the Forex market are a great way to access the performance of the currency market and give traders an edge when making decisions.

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