## Present Value Formula: The Basics of Forex Trading

Present value formula for Forex trading is a method of calculating the current value of a future currency by discounting the future price of the currency. The formula takes into account factors such as inflation, market interest rates and exchange rates. By using the present value formula, Forex investors can easily understand how current currency prices are impacted by changing economic conditions. It is important for Forex traders to appreciate the impact of present value on their trading strategies, because doing so can help them maximize their profits.