To know the future of the currency, you must know the relationship between the market value, trading supplies, and the current price:
1. Market Capitalization:
The market value is the total value of a particular currency and is calculated using the equation:
Market value = trading supplies × current price
The market value reflects the value of the company as viewed by investors. Therefore, the higher the market value, the more investors see the currency positively and that it has a great growth opportunity.
2. Trading Supply:
Trading supply refers to the amount or number of currency that is available for trading in the market. It includes the currency that is actively traded among investors. The flow of traded shares depends on the decisions of investors.
3. Current Price:
The current price of the currency is the price at which the currency is currently trading in the stock market. This price is affected by a number of factors, including the financial performance of the currency, future growth expectations, economic and political news, and general market conditions.
I hope it helps you, and you use this equation before you start trading in new currencies