Currency rates define the value of two national currencies in regard to one another. This value may be formed either by the supply and demand for the subject currency in the free market or under the strict supervision of the national banks of the countries which these currencies belong to.

Currency rate types

Direct rates

Direct rate defines the value of the national currency in foreign currency. In other words, direct rate shows the value of the national currency in US dollars.

For example: 1.6415 GBP/USD currency pair means that 1 UK pond sterling equals 1.6415 US dollars.

Indirect rates

Indirect rate defines the value of the foreign currency in local currency. In other words, indirect rates shows the value of 1 US dollar in other foreign currencies.

For example: 1.5820 USD/TRY currency pair means that 1 US dollar equals 1.5820 Turkish liras.

Çapraz Kurlar Cross rates

Cross rates defines the value of two different country currencies compared to that of the third country. Usually cross rates in Forex involve US dollar. In this case the formula of cross rate for the currency pair is calculated by multiplying.

For example: Cross rate between Euro and Swiss franc is calculated with the following formula: EUR/CHF=USD/CHFxEUR/USD

Spot rates

Spot rate defines the value of the local currency in foreign currency at the moment of trading contract clearance. Spot rates show the value of the local currency abroad at the moment of trading.

Currency rates

Currencies participating in Forex trading operations:

  • USD: US dollar
  • CAD: Canadian dollar
  • AUD: Australian dollar
  • NZD: New Zealand dollar
  • HKD: Hong-Kong dollar
  • NTD: New Taiwanese dollar
  • SGG: Singapore dollar
  • Major currency pairs
  • EUR: Euro - united currency of the European Union
  • USD: US dollar
  • GBP: UK pound sterling
  • CHF: Swiss franc
  • JPY: Japanese yen

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