Foreign exchange newcomers who want to enter the foreign exchange market want to know the basic knowledge of foreign exchange. Below, the author will introduce the concept of foreign exchange rate and the difference between foreign exchange rate and foreign exchange rate.
I believe that for investors who often stay in the currency market, the term “foreign exchange price” must be heard of, but for those new to the currency market, it is still unknown.
Therefore, today, the author will explain the meaning of foreign exchange price and foreign exchange rate what is the difference between foreign exchange price and foreign exchange rate, hoping to help you understand this part of knowledge.
1. What is the Foreign Exchange rate?
Foreign exchange rate: Foreign exchange rate, also known as foreign exchange rate, refers to the exchange rate or ratio of one country’s currency to another country’s currency.
Or the price of one country’s currency in terms of another.
Spot buying rate: The price at which banks buy foreign currency and customers sell it.
Cash buying price: refers to the price at which banks buy foreign currency notes and customers sell foreign currency notes.
selling rate: Selling rate is the rate used by banks to sell foreign currency to customers or peers.
When selling, the seller is willing to go by the price or exchange rate.
The customer can buy the currency he is interested in at this price.
buying rate: The buying rate is the rate used by banks to buy foreign currency from clients or peers.
Bid price: This price is the price at which the market is prepared to buy a currency in a foreign exchange or cross currency trading contract.
At this price, traders can sell base money.
Located in the left part of the quotation, e.g. USD/CHF 1.4527/32, the purchase price is 1.4527;
That means an investor can buy 1.4527 Swiss francs for each dollar sold.
standard price (central price) : Standard price, also called central price, is set by banks according to the trading conditions of various currencies in the international financial market. In our country, the State Administration of Foreign Exchange will release the benchmark price of some currencies, such as US dollar and euro, and other currencies will be calculated by each party.
If you want RMB for euros, use the asking rate.
Bank of China discount price: Bank of China discount price is the central price used internally by Bank of China, which has no effect on ordinary customers.
It is mainly used for the conversion of various currencies in internal accounting, as well as the internal liquidation of foreign exchange purchases and the calculation of the profit and loss of this business.
Personal finance business is the basic business of Bank of China, which can provide customers with a full range of financial instruments, fast and flexible.
Complete varieties, easy to operate, high degree of electronic, safe and reliable.
Our bank provides all kinds of modern products and their combinations to meet customers’ different needs of savings, preservation, income, remittance, exchange and consumption payment.
Ii. What is the difference between foreign exchange rates and foreign exchange rates?
The foreign exchange rate and foreign exchange rate have the same basic meaning, both refer to the immediate exchange rate, but the foreign exchange rate is the foreign exchange reference standard provided by domestic banks and domestic customers. The foreign exchange rate represents the domestic currency price in the currency of other countries, and the price is determined by the foreign exchange market.
In China, the foreign exchange price adopts the direct pricing method of RMB, that is, the amount of RMB equivalent to a certain amount of foreign currency is listed and announced.
Each foreign currency publishes four prices, namely, spot buying price, spot selling price, cash buying price, cash selling price and central price.
The benchmark price is only available in major currencies, such as US dollar, British pound, Euro, Japanese yen, Australian dollar, Canadian dollar, Swiss franc, New Taiwan dollar, Korean won, Thai baht, ringgit, ruble, South African rand, New Zealand dollar, Singapore dollar, Swedish Krona, Danish krone, Macao dollar, Hong Kong dollar, etc.
The spot buying rate refers to the withdrawal of domestic foreign currency from abroad in your account. The bank will not directly give you foreign currency, but will directly accept your foreign currency according to the fixed spot buying rate and exchange it to you at the exchange rate of RMB.
The cash buying rate is when you go directly to the bank with your foreign currency to exchange yuan;
The selling rate is the rate at which the bank converts the yuan in your account into foreign currency when you need to send it out.
The central parity rate, also known as the central rate, is the average of the buying rate and the selling rate.
The calculation formula is: middle exchange rate =(buying exchange rate + selling exchange rate)¡Â 2.
Summary: What is the meaning of foreign exchange rate?
What’s the difference with the foreign exchange rate?
These two questions are the basic knowledge of foreign exchange introduction. The advantages of foreign exchange speculation have been mentioned above, that is, the foreign exchange market is a very free and open market, and foreign exchange investors around the world can trade at their own will.
So for starters, what does a foreign exchange rate mean?
What’s the difference with the foreign exchange rate?
This kind of problem must be mastered!
I believe you have answered your questions through the introduction of Xiaobian. Pay attention to Xiaobian, and Xiaobian will continue to take you to learn the basis of foreign exchange.
