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Saturday, April 28, 2018

Direct and indirect currencies

The terminology in the currency market that the euro and the pound sterling are the currencies against the dollar basis, and therefore are placed first RmazihmaAs follows: EUR / USD and GBP / USD.And the price which is placed in front of any of the previous versions is the amount required to pay the dollar for one euro or one pound.When we say: EUR / USD = .9000This means that the required payment of U.S. dollar = 0.9000 for one euro.When we say: GBP / USD = 1.5000This means that the required payment of U.S. dollar = 1.5000 for one pound.Called the currencies that are the base currencies against the U.S. dollar currencies direct.
 
Currencies DirectIs the currency symbol is placed before the code and the dollar is the base currencyThe most important of these currencies in the international market for currencies isEuro EUR / USDBritish pound GBP / USDAustralian Dollar AUD / USD
 
Terminology has been in the currency market to be the U.S. dollar is the base currency against the yen and Swiss franc. And thus the dollar symbol is placed first in the formula and then placed the code yen, or franc.As follows: USD / JPY and USD / CHF.When we say: USD / JPY = 120This means that the required payment of yen = 120 yen for one dollar. Where the dollar is the base currency.When we say: USD / CHF = 1.4000This means that the required payment of CHF = 1.4000 for one dollar.Called the currencies that the dollar is the currency against which the base currency is direct.
 
Currency indirectIs the currency symbol is placed before the U.S. dollar and the dollar is the base currencyThe most important of these currencies in the international market for currencies isJPY USD / JPYCHF USD / CHFCanadian Dollar USD / CAD
 
Why was the convention that the euro and the pound sterling currency direct, while the yen and the franc currency indirect?Answer: It is just a name ..!!Perhaps the purpose of simplification, for if we wanted to know how many dollars must be paid for the yen and the one that requires a lot of fractures, so the dollar against the franc and the yen is the currency basis.In fact, the differences in coding between currencies direct and indirect effects in a lot of things that will meet you after that.

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