Monday, November 2, 2009

3.14 Forex Lexicon : Quote Convention

Exchange rates in the FOREX market are expressed
using the following format:

Base Currency/Quote Currency Bid/Ask

EUR/USD                                     1.2604/07
GBP/USD                                     1.5089/94
CHF/JPY                                      84.40/45

Normally only the final two digits of the bid price are shown.
If the ask price is more than 100 pips above the bid price, 
then three digits will be displayed to the right of the slash mark 
(that is, EUR/CZK 32.5420/780).
This only occurs when the quote currency 
is a very weak monetary unit.

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