Direct and indirect quotes in forex market

Exchanges rates on the other hand are forex rates or FX rates that represent the value of one currency in relation to another currency. This is the exchange direct and indirect quotes in forex market between the US Dollar and Japanese Yen, which means that 1 US dollar is equal to 96.

A direct quote means indicates how many units of local currency traders need to buy one unit of foreign currency. In other words, it’s the home currency price of 1 unit of foreign currency. In a direct quote, the domestic currency is always listed as the base currency. SGD, which indicates how many US Dollar are required to buy one Singapore Dollar. Here, the USD is the base and the SGD is the counter currency. Indirect quote indicates how many foreign currencies are needed to purchase one unit of domestic currency. In an indirect quote, the foreign currency is the base currency and the domestic currency is the counter or quote currency.

This quotation is the reverse of direct quote which means that how many Singapore Dollars are needed to buy a single US Dollar. In the Forex market, currencies are traded in pairs and it is not difficult to understand forex quotes. JPY pair, the US Dollar is the base currency and the Yen is the quote currency. Before start trading, traders have to understand basic terminology. The most important thing is to be able to read forex quotes and to understand how to simultaneously buy one currency and sell the other. Here, the US Dollar is the base currency and the Canadian Dollar is the quote currency. The bid price for the pair is 1.

1735 and the ask price is 1. US Dollar and simultaneously selling the Canadian Dollar. Your information will never be shared. Exchanges rates on the other hand are forex rates or FX rates that represent the value of one currency in relation to another currency. This is the exchange rate between the US Dollar and Japanese Yen, which means that 1 US dollar is equal to 96. A direct quote means indicates how many units of local currency traders need to buy one unit of foreign currency. In other words, it’s the home currency price of 1 unit of foreign currency.