Traders Exchange

Base and Counter Currency

Currencies are often quoted in terms of other currrencies.  For Example, the per unit currency in the  exchange rate is called the base currency.  The other currency is called the counter currency.

For Example

Currency Pair                                  Base Currency                                  Counter Currency

USD against JPY                             USD                                                  JPY

EUR against USD                            EUR                                                  USD

Market Conventions

Notation                                          Market Jargon                                  Market Conversion

EUR/USD                                        Euro Dollar                                      USD per EUR

GBP/USD                                        Sterling Dollar                                 USD per GBP

USD/CHF                                        Dollar Swiss                                    CHF per USD

AUD/USD                                        Aussie Dollar                                   USD per AUD

NZD/USD                                         Kiwi Dollar                                       USD per NZD

USD/CAD                                         Dollar Cad                                       CAD per USD

EUR/JPY                                         Euro-Yen                                          JPY per EUR

EUR/GBP                                        Euro-Sterling                                    GBP per EUR

AUD/JPY                                         Aussie-Yen                                       JPY per AUD

How Currencies Are Quoted

An exchange rate is the price of one currency expressed in terms of another currency.  It is commonly quoted a one unit of a currency against certain unit(s) of another currency per one currency.

For example

USD 1 = JPY 120.00

EUR 1 = USD 1.0800

GBP 1 = JPY 196.00

Two Way Pricing

When a client wants to make a trade, they may call up the 24 hour dealing desk to request a quote or view two-way real time pricing via DealBook.  Normally, the party asking for the quote does not need to disclose his/her interest or intention to buy or sell.   Not knowingly what the caller wants to do,  the dealing desk will quote a two-way price that comprises the buying and selling price. 

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