Exchange Rate

FX Fundamentals

Exchange rate is the rate at which one currency will be exchanged for another. A conventional way to express currency exchange rates is to express conversion rates in units of the second currency (called Quote currency or Counter currency) for 1 unit of Base currency.  For instance, a quote of GBPUSD = 1.0500 means that one Pound Sterling (GBP) is worth 1.05 US Dollars.

Related terms

Currency Spot Rate Currency Pair Bid-Ask Spread

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