Seriously? How do they figure this out?
I calculated the currency exchange for a bag of chips in India which were for 10 rupees, and that was like 21 cents in the USA. Let me just say that the potato chips bag was medium sized.

Answer
Like many other things in economics, supply and demand of the foreign currency will determine the exchange rate in the foreign exchange market (or the equilibrium, aka the spot exchange rate). Supply and demand are constantly fluctuating which is why the spot exchange rate (equilibrium in the ForEx market) is always fluctuating.
So, it's not people that figure out the exchange rate, it's the foreign exchange market :)

what are bollinger bands and how can use them in trading forex?

I am learning forex trading and would like more information on what bollinger bands are and how i can used them to trade. I am told some traders find them useful in trading forex

Answer
Bollinger bands are about the best indicator you will ever use to help identify high probability trades. Bollinger bands measure a standard deviation from the mean or middle. Usually the "mean" or middle is a 21 day moving averade of closing price.

So you would lay down a 21 day moving average and then a 2.0 standard deviation set of Bollinger bands and when price closed outside of either band it is said to have closed outside a 2 standard deviation band. 2 standard deviations from the mean.


To profit in currency or forex trading you need to master the techniques and choose the techniques that are working for you when practising them on a practice account. The rule is, don't trade real money before proving your skills on a practice account. I would recommend trading on a practice account for at least a month before opening a real money account. The site i got this information has a video to show you how to trade bollinger bands