In finance the quote currency (also known as the exchange rate) - is the value of one currency against another specific.For example, 91 Japanese yen may be exchanged for one US dollar, which means that their quotation is 91: 1.This value is determined on the Forex market, which operates 24 hours a day, excluding weekends.
Thus, apart from the fact that such quotes can be determined as the ratio of one currency to another in their pair.At the same currency, which is used as a reference, called the quote currency, and the second - the currency transaction.
Such monetary couples sometimes written by concatenating the codes ISO (ISO 4217), separated by a slash.The most commonly traded currency pair is the ratio of the euro against the US dollar, referred to as EUR / USD.An example of what the quotes, so you can imagine the ratio of EUR / USD.In this example, the euro is the base currency, USD - counter.
Quotes currencies have standard abbreviations provided by the International Organization for Standardization (known as ISO).Due to ISO 4217, the main cash currency and their values are indicated as follows: - US Dollar (USD), British pound (GBP), Euro (EUR), Australian dollar (AUD), Japanese yen (JPY), Canadian dollar (CAD)and finally the Swiss franc (CHF).
quotation marked EUR / USD 1,2500, says that one Euro is exchanged for 1.2500 US dollars.If there is a change in her, for example, 1.2500 to 1.2510, the euro will increase its relative importance.In turn, this means that the dollar has weakened, while the euro - has appreciated.On the other hand, if the ratio of EUR / USD 1.2500 to vary from 1.2490 - while the euro is relatively weaker than the dollar.
Talking about what quotes, remember the rules established by the European Central Bank.According to its requirements, the currency pair euro has priority.Thus, all pairs with its participation must apply it as a base, mentioned at the outset.For example, the exchange rate of the US dollar is defined as the EUR / USD.
However, in some regions, currencies may change places or do not have a precise notation.In order to determine what is the base currency in this pair, the basis of a unit that has the exchange rate over 1000. This avoids problems with the rounding - exchange rates are listed with more than 4 characters after the decimal point.There are some exceptions to this rule, for example, Japan is often cited its currency as a base for others.Talking about what the quotes, it should be noted that the display value of the currency as a base is used in most countries of the world and is called a direct quote.Showing such a relation in the reverse sequence called indirect quote and distributed in Australia, New Zealand and some countries in the Eurozone.So, the indication USD 1,35991 = 1,00 EUR displays not the value of the dollar quotation, and the value of the euro.
When using direct quotes increase in the base currency speaks of strengthening it and increasing the value of the quote.In other words, the rise of the exchange rate represents a value increase of a particular currency unit
