Pips and Figures
The following example demonstrates what pips and figures are:
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Saturday, April 25, 2009
Quoted and Basic Currencies
he spot exchange rate is the price of one currency in terms of another. In the example above,120.44 – 120.52 USD/JPY, USD is the basic currency and JPY is the quoted currency. This is not the case in our second example, 1.3600 – 1.3610 GBP/USD, where USD is the quoted currency because it is second in the GBP/USD expression.
Pips and Figures
The following example demonstrates what pips and figures are:
Pips and Figures
The following example demonstrates what pips and figures are:
Direct and Indirect Quotes
On the currency exchange market in every country, the local currency is quoted directly or indirectly against the US Dollar and other foreign currencies.
- The direct quoting is the amount of local currency needed to buy one unit of the foreign currency and the amount of local currency respectively due to be received when one unit of foreign currency is being sold. For instance, in Japan:
120.44 – 120.52 USD/JPY This means that dealers are buying one dollar for 120.44 yen, but are selling it for 120.52 yen.
Spot Date
The spot date on currency exchange markets is two working days after the actual deal. It takes two days to process all necessary documents and carry out all transactions, keeping in mind that usually the countries whose currencies take part in the deal belong to different time zones and payments need to be synchronized. The spot date cannot be Saturday, Sunday or an official holiday for any of the two countries. In such cases, the spot date is the next working day.
There is an option for the deal to be negotiated with a value date prior to the spot date, for example the same day as the date of the deal or the next day. In the first case, the value date is today’s date and in the second it is tomorrow’s date. In these two cases, the exchange rate is different from the exchange rate on the spot date. The difference arises because of the interest rate differential.
There is an option for the deal to be negotiated with a value date prior to the spot date, for example the same day as the date of the deal or the next day. In the first case, the value date is today’s date and in the second it is tomorrow’s date. In these two cases, the exchange rate is different from the exchange rate on the spot date. The difference arises because of the interest rate differential.
Spot Rate
Spot rate is today’s market price of one currency measured in terms of another, for example, the price of one US dollar in Swiss Francs. The spot rates of all currencies against the US dollar (USD) are basic ones, the rest are considered cross rates.
Some of the existing currencies are considered major; these include the US Dollar (USD), the Euro (EUR), the British Pound (GBP), the Swiss Franc (CHF) and the Japanese Yen (JPY).
When you ask dealers for a quote, for example EUR/USD, they will provide you with two different prices, e.g. 1.0643 – 1.0647. From the dealer’s perspective, the difference between the two numbers “buy” and “sell” is called spread. If you want to buy 1 Euro, you have to pay theoretically 1.0647 USD for it, but if you want to sell 1 Euro you are going to be paid 1.0643 by your dealer. In this case, the difference between “buy” and “sell” in the spread is 0.0004, or 4 pips. In fact, buying one currency is the action of selling another. Alternatively, selling one currency actually means that you are buying the other.
Some of the existing currencies are considered major; these include the US Dollar (USD), the Euro (EUR), the British Pound (GBP), the Swiss Franc (CHF) and the Japanese Yen (JPY).
When you ask dealers for a quote, for example EUR/USD, they will provide you with two different prices, e.g. 1.0643 – 1.0647. From the dealer’s perspective, the difference between the two numbers “buy” and “sell” is called spread. If you want to buy 1 Euro, you have to pay theoretically 1.0647 USD for it, but if you want to sell 1 Euro you are going to be paid 1.0643 by your dealer. In this case, the difference between “buy” and “sell” in the spread is 0.0004, or 4 pips. In fact, buying one currency is the action of selling another. Alternatively, selling one currency actually means that you are buying the other.
Currency
Please, enter the currency pair abbreviation separating the two currencies by a slash, e.g. EUR/USD.
Determine Market Trends by Resistance and Support Price Levels
In order to calculate a resistance/support level, please enter the code or symbol of the desired instrument:
– Currency pairs – abbreviations need to be separated by a slash (i.e. EUR/USD);
– Stocks or stock indices – you need to enter the symbol of the appropriate asset. If you are not aware of a certain symbol, you can find it from the list of quoted instruments by clicking on stocks or indices.
– Stocks or stock indices – you need to enter the symbol of the appropriate asset. If you are not aware of a certain symbol, you can find it from the list of quoted instruments by clicking on stocks or indices.
Currency Converter
Deltastock offers webmasters an easy to integrate, customizable currency converter. Currencies are converted at live market prices. The Currency Converter proved to be a valuable tool for, among others, FX traders, businesses, travelers.
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