1, the calculation standard is different.
Indirect pricing method is to calculate the foreign currency receivables of several units in the domestic currency of a unit (such as 1 unit). Direct quotation is based on foreign currency.
2. Different exchange rates
In the indirect pricing method, the local currency amount remains unchanged, and the foreign currency amount changes with the relative change of the local currency value. If a certain amount of local currency can be converted into less foreign currency than the previous period, it means that the value of foreign currency rises and the value of local currency falls, that is, the foreign exchange rate falls.
The direct quotation is 1 unit or 100 unit, and the exchange rate of domestic currency is the same.
Extended data:
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 10-40 points in domestic banks.
Britain and the United States are both countries that adopt indirect pricing method. Dollar pricing method and non-dollar pricing method are customary practices for buying and selling foreign exchange quotations in the international foreign exchange market, which have been established internationally.
Baidu Encyclopedia-Indirect Pricing Method
Baidu encyclopedia-direct reference