Exchange rates
Exchange rate - the price of the currency of one country, expressed in monetary units of other countries and purchase transactions - the sale. This price can be set based on supply and demand in a certain currency in a free market, or to be strictly regulated the government's decision or its main financial body, usually the central bank.
Exchange rates shown by a pair of currencies involved in the transaction, such as: GBP / USD or USD / CHF, where GBP / USD shows how much U.S. dollars is contained in one English pound (U.S. dollars can buy an English pound) and USD / CHF shows how CHF is contained in a U.S. dollar (CHF can be bought for 1 U.S. dollar).
The currency standing in the currency pair is first base, determining how much per unit of base currency provides another national currency (the other national currency can be bought per unit of base currency).
Direct quotes
Direct quotes quote is showing how many U.S. dollars contained in a unit of the national currency.
System of direct quotations of their currency, in particular, used the United Kingdom and Australia (GBP / USD and AUD / USD). Direct quotation and initially uses Euro (EUR / USD).
For example: AUD / USD shows how much U.S. dollars is contained in 1 Australian dollar (U.S. $ can buy an Australian dollar).
Inverse (indirect) quotes
Inverse (indirect) quote currency is called the quote that shows how much currency is in one U.S. dollar.
To reverse the quotations are: USD / CHF, USD / JPY, USD / CAD.
For example: USD / CHF shows how many Swiss francs is contained in a U.S. dollar (CHF can be bought for 1 U.S. dollar).
Spot - Courses
Spot - rate reflects how highly regarded national currency against the U.S. dollar.To spot - courses include both direct and indirect quotations.
You should know that:- Move up the charts direct quotes an increase () of the base currency against the U.S. dollar;- Move up the charts indirect quotes mean decrease () of the national currency against the U.S. dollar.
Cross - training
Cross - rate - the ratio between the two currencies, which stems from their policy towards third currency exchange rate. In operations on the world market, are generally used cross - courses where third currency U.S. dollar serves as the U.S. dollar is not only a major reserve currency, and currency transactions in most foreign exchange transactions.For example: CHF / JPY, GBP / CHF, EUR / GBP, EUR / CHF, EUR / JPY.
Calculations based on the cross - rates GBP / JPY, GBP / CHF, EUR / CHF, EUR / JPY are determined by multiplying:GBP / JPY = GBP / USD x USD / JPYGBP / CHF = GBP / USD x USD / CHFEUR / CHF = EUR / USD x USD / CHFEUR / JPY = EUR / USD x USD / JPYFor example, at the rate of EUR / USD = 1.0100 and rate USD / JPY = 123.50, rate EUR / JPY will correspond to 1.0100 x 123.50 = 124.73
Exchange rate - the price of the currency of one country, expressed in monetary units of other countries and purchase transactions - the sale. This price can be set based on supply and demand in a certain currency in a free market, or to be strictly regulated the government's decision or its main financial body, usually the central bank.
Exchange rates shown by a pair of currencies involved in the transaction, such as: GBP / USD or USD / CHF, where GBP / USD shows how much U.S. dollars is contained in one English pound (U.S. dollars can buy an English pound) and USD / CHF shows how CHF is contained in a U.S. dollar (CHF can be bought for 1 U.S. dollar).
The currency standing in the currency pair is first base, determining how much per unit of base currency provides another national currency (the other national currency can be bought per unit of base currency).
Direct quotes
Direct quotes quote is showing how many U.S. dollars contained in a unit of the national currency.
System of direct quotations of their currency, in particular, used the United Kingdom and Australia (GBP / USD and AUD / USD). Direct quotation and initially uses Euro (EUR / USD).
For example: AUD / USD shows how much U.S. dollars is contained in 1 Australian dollar (U.S. $ can buy an Australian dollar).
Inverse (indirect) quotes
Inverse (indirect) quote currency is called the quote that shows how much currency is in one U.S. dollar.
To reverse the quotations are: USD / CHF, USD / JPY, USD / CAD.
For example: USD / CHF shows how many Swiss francs is contained in a U.S. dollar (CHF can be bought for 1 U.S. dollar).
Spot - Courses
Spot - rate reflects how highly regarded national currency against the U.S. dollar.To spot - courses include both direct and indirect quotations.
You should know that:- Move up the charts direct quotes an increase () of the base currency against the U.S. dollar;- Move up the charts indirect quotes mean decrease () of the national currency against the U.S. dollar.
Cross - training
Cross - rate - the ratio between the two currencies, which stems from their policy towards third currency exchange rate. In operations on the world market, are generally used cross - courses where third currency U.S. dollar serves as the U.S. dollar is not only a major reserve currency, and currency transactions in most foreign exchange transactions.For example: CHF / JPY, GBP / CHF, EUR / GBP, EUR / CHF, EUR / JPY.
Calculations based on the cross - rates GBP / JPY, GBP / CHF, EUR / CHF, EUR / JPY are determined by multiplying:GBP / JPY = GBP / USD x USD / JPYGBP / CHF = GBP / USD x USD / CHFEUR / CHF = EUR / USD x USD / CHFEUR / JPY = EUR / USD x USD / JPYFor example, at the rate of EUR / USD = 1.0100 and rate USD / JPY = 123.50, rate EUR / JPY will correspond to 1.0100 x 123.50 = 124.73
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