What is Forex Fixing?

An exchange rate is the rate at which one currency may be traded (bought or sold) for another currency. Normally it is more expensive to buy another currency than it is to sell that currency. This differential is referred to as the "spread" and the difference between the buy rate and the sell rate is referred to as the "mid rate".Forex fixing is the daily monetary exchange rate fixed by the national bank of each country. The idea is that central banks use the fixing time and exchange rate to evaluate behavior of their currency. Without any central point of reference, it is up to every country to control their own exchange rates with other currencies in what is now a highly volatile but potentially lucrative market.Fixing exchange rates reflects the real value of equilibrium in the forex market. Banks, dealers and online foreign exchange traders use fixing rates as a trend indicator.