ExchangeQuotation: First determine which country is based on the price ratio between the two differences.
Due to the different standards, the exchange rate pricing methods are also different.
The general pricing method includes direct pricing method, indirect pricing method and.
Direct pricing, also known as.
Calculate the amount payable in local currency based on a given unit of foreign currency (1,100, 1,000, 10,000).
It is called a pricing method because it is equivalent to calculating the domestic currency of a unit of foreign currency purchased.
Most countries in the world, including China, now use the direct pricing method.
In the market,, and are directly priced.
In the direct pricing method, when the local currency amount of a given unit is greater than the previous period, the increase in the foreign currency amount or the decrease in the local currency amount is called an increase.
Conversely, if less of the local currency can be converted into the same amount of foreign currency, the exchange rate of the foreign currency decreases or the value of the local currency increases.
Indirect pricing method, also called receivable pricing method.
This calculates multiple units of foreign currency based on a given unit (for example, 1 unit) of the national currency.
Internationally,, and are priced indirectly.
For example, if the euro is $0.9705, then 1 euro is $0.9705.
Indirect pricing does not change the amount expressed in local currency.
Foreign currency amounts vary with the comparison of domestic currency amounts.
If the amount of a local currency converted into foreign currency is lower than the previous period, the foreign currency amount increases, the domestic currency amount decreases, and the foreign currency exchange rate increases.
On the contrary, if the amount of foreign currency convertible in a certain domestic currency is greater than the previous period, the amount of foreign currency will decrease and the amount of domestic currency will increase, that is, the exchange rate of foreign currency will decrease, that is, the value of foreign currency is inversely proportional to the increase of exchange rate.
Two-way price quotation on the market is generally two-way quotation.
Bidders will work with The Times to propose their purchase and sale prices, and customers will determine the direction of the deal.
The smaller the spread between the purchase price and the sale price, the lower the cost to investors.
The quoted price gap between banks is usually two to three points.
The price gap between the bank (or dealer) and the customer varies from case to case.
At present, the quotation gap is basically 3-5 points for overseas margin trading, 6-8 points for Hong Kong, and 10-50 points for physical trading by domestic banks.
The dollar marking method is used in exchange market quotations.
The dollar pricing method is also known as the New York Pricing method.
In the dollar-pricing method, countries measure the value of their own currency against the U.S. dollar (that is, an expression that should be converted to other countries’ currencies based on one dollar unit).
However, in terms of the respective dollar ratio, rather than dollars, please note the currencies of the buyer and seller here.
With the exception of British pound, euro, Australian dollar and New York, the international foreign exchange market basically adopts the US dollar pricing method.
It is characterized by the fact that all currencies traded in the foreign exchange market are denominated in dollars.
With the exception of a few currencies, such as the British pound, ordinary currencies use the dollar as the foreign currency of direct pricing.
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Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
