direct quotation
The direct quotation method, also known as the price payable method, is to calculate how many units should be paid in the local currency based on a certain unit of foreign currency (1, 100, 10000,10000). It is equivalent to calculating how much local currency should be paid for purchasing a unit of foreign currency, so it is called the payable price method. Most countries in the world, including China, currently adopt direct quotation. In the international foreign exchange market, Japanese yen, Swiss franc and Canadian dollar are all quoted directly, such as Japanese yen 1 19.05, that is, US dollar 1 pair 1 19.05.
Under the direct quotation, if a unit's foreign currency conversion cost currency is more than the previous period, it means that the foreign currency value rises or the local currency value falls, which is called the foreign exchange rate rise; On the other hand, if you want to use less local currency than before, you can convert it into the same amount of foreign currency, that is to say, the decline of foreign currency value or the increase of local currency value is called the decline of foreign exchange rate, that is, the value of foreign currency is inversely proportional to the rise and fall of exchange rate.
Indirect pricing method
Indirect pricing method is also called accounts receivable pricing method. It calculates the foreign currency receivable of several units in the domestic currency of a unit (such as 1 unit). In the international foreign exchange market, euro, pound and Australian dollar are all indirectly priced. For example, the exchange rate of the euro against the US dollar is 1.3830, that is, 1 euro pair 1.3830.
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 rises; On the other hand, if a certain amount of local currency can be converted into more foreign currency than in the previous period, it means that the value of foreign currency declines and the value of local currency rises, that is, the foreign exchange rate declines, that is, the value of local currency is inversely proportional to the rise and fall of exchange rate.
Bidirectional pricing
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. At present, 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.
Unit dollar quotation
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.