First of all, direct quotation, also known as payable pricing method, refers to the pricing method of converting a certain unit of foreign currency into a certain amount of domestic currency. At present, most countries adopt direct quotation; Under this pricing method, the fluctuation of foreign exchange rate is inversely proportional to the change of the value of domestic currency: the local currency appreciates and the exchange rate declines; The local currency depreciates and the exchange rate rises. With the appreciation of domestic currency, the less domestic currency can be converted into unit foreign currency, the smaller the exchange rate value; On the other hand, if the domestic currency depreciates, the more local currency can be converted into foreign currency, and the greater the exchange rate value. At present, the exchange rates of Japanese yen, Swiss franc and Canadian dollar are all direct quotations.

For example:

USD/JPY = 106.00, that is, 106.00 JPY is converted into 1 USD;

Usdcad = 1.0700, that is to say, 1.0700 can be converted into 1 USD;

USD/CHF = 1. 1400, which means that 1. 1400 Swiss francs are converted into 1 USD, and so on.

Secondly, indirect pricing method, also known as accounts receivable pricing method, refers to the method of converting a certain unit's domestic currency into a certain amount of foreign currency. Euro, pound and Australian dollar are indirectly priced. With the appreciation of domestic currency, the more foreign currencies that can be converted into unit local currency, the greater the exchange rate value; On the other hand, if the domestic currency depreciates, the less foreign currency can be converted into local currency, and the smaller the exchange rate value. Under the indirect pricing method, the fluctuation of foreign exchange rate is directly proportional to the change of domestic currency value: the local currency appreciates and the exchange rate rises; The local currency depreciated and the exchange rate fell.

For example:

GBPUSD = 1.8000, that is, 1.8000 dollars is converted into one pound;

Euro/USD = 1.42 10, that is, 1.42 10 USD is converted into 1 Euro;

AUDUSD)=0.7943, which means that 0.7943 USD is converted into 1 AUDOD, and so on.

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