What is Direct and Indirect Quote in Foreign Exchange Market

A spot exchange rate is one at which currency can be sold or bought for immediate delivery which two business day after the transaction. In spot exchange market the quote for a currency may be direct or indirect. Let’s look what direct and indirect quote implies in foreign exchange market.

Direct Quote – It refers to the number of units of domestic currency which is required to buy one unit of foreign currency. So if direct quote for rupee/$ is 45/1 then it implies that for buying 1 dollar you have to pay 45 rupees.

Indirect Quote – It refers to the number of units of foreign currency required to buy 1 unit of domestic currency. So if indirect quote for $/rupee is .25$ then it implies that for buying 1 rupee one has to pay .25$. Indirect quote is an inverse of direct quote so if one knows direct quote one can easily calculate indirect quote for a currency.

0 comments… add one

Leave a Comment


Related pages


accounting entry for prepaid insurancepros and cons of command economyfinancial ratio analysis advantages and disadvantagescharacteristics of job costingdisadvantages of cash flowadvantages of perfect competitiondistinguish between management accounting and cost accountingcentrally directed economydifferentiate between micro and macro economicsjournal entries for outstanding expensesprinciple of conservatism in accountingkinds of factoringadvantages of a mixed economic systemmixed economy advantages disadvantagesdefinition of drawee and drawerexamples of veblen goodsdemocratic style of management advantages and disadvantagesfinancial derivatives pptbenefits of a command economycapital receipts examplesano ang mixed economyauthorized shares vs issued sharesexample of monopolistic competition companymerits of advertisementindirect expenses in accountingdirect quotation exchange rateadvantages of penetration pricingexamples of physical assetsrent prepaid journal entrypricing skimmingexpense meaning in hindifeatures of demat accountbhel company in indiaexplicit cost in economicsexample of debit notethe disadvantages of globalisationadvantages of demographic segmentationcurrent liabilities examples in accountingunearned service revenue still unearned journal entryintraday tradesintermediate goods definition economicstypes of price elasticity of demand with graphsadjusting entries for prepaid expenseswhat is the difference between shares and debenturesexamples of diminishing returnsvertical mergerpayback period meaningcrr and slrwhat is an unqualified audit opiniondisadvantages of rural areasbarter system definitiondiscounting billobjectives of demat accountdefine predeterminationintermediate good economicsadvantages and disadvantages of market penetration strategywhat is full form of cfafinancial derivatives pptadvantages and disadvantages of barteringassumptions of a perfectly competitive marketconsortium finance meaningdemerits of industrializationjournal entry deferred revenueadvantage of fifo methodadr full formjob order costing versus process costingcontingent liabilities accountingexample of demand depositeconomic system of socialismadvantages activity based costingmerits and demerits of international tradeglobalisation merits and demeritscapital reciept