Indirect pricing method: indirect pricing method is a method of expressing the exchange rate of a certain unit of domestic currency in foreign currency. Refers to the number of foreign currencies converted from the local currency of 1 or 100. At present, only a few countries adopt indirect pricing methods, such as pound, euro and Australian dollar. For example, the exchange rate of sterling to RMB is 1: 9.38+0.
Exchange rate refers to the exchange rate between two currencies, and can also be regarded as the value of one country's currency against another's currency. Specifically, it refers to the ratio or parity between one country's currency and another country's currency, or the price of another country's currency expressed in one country's currency.
Exchange rate changes have a direct regulatory effect on a country's import and export trade. Under certain conditions, by devaluing the local currency, that is, letting the exchange rate rise, it will promote exports and restrict imports; On the other hand, the appreciation of the domestic currency, that is, the decline of the exchange rate, plays a role in restricting exports and increasing imports.
Exchange rate (also known as foreign exchange rate, foreign exchange rate or foreign exchange market) The exchange rate between two currencies can also be regarded as the value of one country's currency against another. Exchange rate is also a financial means for a country to achieve its political goals. The exchange rate will change because of interest rates, inflation, national politics and national economies. The exchange rate is determined by the foreign exchange market.
The quotation in the foreign exchange market is generally a two-way quotation, that is, the quotation party quotes its own buying price and selling price at the same time, and the customer decides the buying and selling direction by himself. The smaller the difference between the buying price and the selling price, the smaller the cost for investors. The quotation spread of inter-bank transactions is normally 2-3 points, and the quotation spread of banks (or dealers) to customers varies greatly according to various situations. The quotation spread of foreign margin trading is basically 3-5 points, 6-8 points in Hong Kong and 10-50 points in domestic banks.
Trading quotation for foreign exchange market. Dollar pricing method, also known as new york pricing method, is that countries measure the value of each country's currency based on the dollar (that is, how much other countries' currencies should be converted based on a certain unit of dollars), instead of calculating the exchange rates of buyers and sellers' currencies according to their respective ratios to the dollar when buying and selling foreign exchange. It should be noted here that the dollar pricing method has basically become popular in the international foreign exchange market except the pound, euro, Australian dollar and New Zealand dollar.
Its characteristic is that all currencies traded in the foreign exchange market are quoted in US dollars, and the general currencies are directly priced in US dollars except a few currencies such as the pound.