There are many places to purchase the euro currency prior to going abroad into the euro zone. They can also be purchased in the European countries that use the euro. There is a set rate of exchange that constantly fluctuates between other currencies and the euro. Everyone hopes that that when they buy euro currency, the amount of euro currency they receive goes up in relation to their money.
Governments and businesses often exchange their currencies when settling accounts. Some nations and businesses must buy euro currency to settle accounts that require the euro as the currency of choice. As an example if France is buying Saudi Arabian oil, the euro currency of France must be converted into dollars, because as of now Saudi Arabia prices their petroleum in dollars.
As an example if France is buying Saudi Arabian oil, the euro currency of France must be converted into dollars, because as of now Saudi Arabia prices their petroleum in dollars. France must then sell the euro for the transaction. Many traders buy the euro currency, not actually taking physical possession, as a means of hedging or trading. They are hedging their bets, as do companies, to cover potential losses.
Some sophisticated people who buy euro currency do so after they shorted the euro. That means they borrowed the euro currency at a high price. When it falls in value, they buy euro currency at a lower price to return the borrowed amount. They then keep the spread amount, making a profit. The world of currency trading is exciting and teaches the student some math skills probably not learned or forgotten since school. There are a lot of exchange portals online, so do your research to get the best exchange rates.
They then keep the spread amount, making a profit. The world of currency trading is exciting and teaches the student some math skills probably not learned or forgotten since school. The euro currency is relatively new and became the currency of many countries when they gave up their national currency. For example, the French Franc is no longer uses but instead the euro is used in France. On the other hand Great Britain still uses the Pound Sterling. Norway is another country not using the euro as their national currency.
