Price to Sales Ratio: Using it in Forex Trading
Price-to-Sales Ratio (P/S) is a financial measure commonly used by traders to evaluate the price of a currency pair relative to its sales transaction activity. P/S indicates how much investors are willing to pay for every $1.00 in sales activity. The ratio can be used to compare different currency pairs and can help investors identify the ones that are relatively less expensive versus their peers. By understanding the dynamics of P/S, forex traders can build a more comprehensive and nuanced analysis of the respective currency pair and gain insight into its future movements.
