A direct quote is a currency pair quote where the foreign currency is expressed in per-unit terms of the domestic currency . A direct quote gives you the quantity of local currency needed to purchase one unit of foreign currency.
What currencies are quoted indirectly?
For example, USD to INR is a direct quote and INR to USD is an indirect quote. Most exchange rates list the USD as the base currency. Exceptions, in this case, include the Euro and the Commonwealth currencies such as Great Britain Pound (GBP), Australian Dollar (AUD), and the New Zealand Dollar (NZD).
What is the difference between direct and indirect currency quotes?
Direct quotation is where the cost of one unit of foreign currency is given in units of local currency , whereas indirect quotation is where the cost of one unit of local currency is given in units of foreign currency.
What is direct quote example?
A direct quotation is a report of the exact words of an author or speaker and is placed inside quotation marks in a written work. For example, Dr. King said, “I have a dream.”
What is a quote currency?
The quote currency (counter currency) is the second currency in both a direct and indirect currency pair and is used to value the base currency. ... When somebody buys (goes long) a currency pair, they sell the counter currency; if they short a currency pair, they would buy the counter currency.
What is a direct and indirect quote?
A direct quote (or direct quotation) is the exact words taken from an original source and used in a second piece of writing . An indirect quote (or indirect quotation) is the idea or fact taken from an outside source and used in a second piece of writing.
What is an example of indirect quotation?
In writing, an “indirect quotation” is a paraphrase of someone else’s words: It “reports” on what a person said without using the exact words of the speaker. ... An indirect quotation (unlike a direct quotation) is not placed in quotation marks. For example: Dr. King said that he had a dream .
How do you calculate a direct quote?
In direct quote since exchange rate is expressed in terms of domestic currency per unit of foreign currency, direct quote between US dollar and British pound would be $1.5625 per £ (calculated by dividing $20,000 by £12,800). $1.5625/£ is an indirect quote for the British resident.
Why a country uses direct or indirect quotation?
An indirect quote in the foreign exchange markets expresses the amount of foreign currency required to buy or sell one unit of the domestic currency . An indirect quote is also known as a “quantity quotation,” since it expresses the quantity of foreign currency required to buy a unit of the domestic currency.
How do you convert a direct quote to an indirect quote?
Another example: For an EU resident the direct bid-ask quote for USD is 1.3391 − 1.3392. To get the indirect quote, we just need to find the inverse of the prices and then switch their places . So, for an EU resident, the indirect quotation rate for the euro and USD would be (0.7467 − 0.7468).
When would you use a direct quote?
- when reproducing an exact definition (see Section 6.22 of the Publication Manual),
- when an author has said something memorably or succinctly, or.
- when you want to respond to exact wording (e.g., something someone said).
What is an example of quotation?
An example of a quotation is when you take a passage from Shakespeare and repeat it as written without changing any of the words . An example of a quotation for a stock is the price of $24.56-$24.58.
Do you italicize direct quotes?
Short quotations (less than 40 words) should be enclosed in single quotation marks (‘...’) and be part of the main text. Longer quotations should start on a separate line, with no quotation marks, and indented throughout. Do not italicize quotations .
How do you quote currency?
Currencies are quoted in relation to another currency . For example, when we refer to the exchange rate of the euro (the currency of the European Union) to the U.S. dollar we quote the relationship, or exchange rate, as EUR/USD.
How do you read currency quotes?
No matter which currency is the base currency—whether USD, EUR or any base currency—the base currency always equals 1. The quoted amount, 1.3600 is the amount of the quote currency, USD, it takes to equal 1 unit of the base currency, EUR. The meaning of this hypothetical quote is that 1 USD equals . 7352 EUR.
What is the highest currency in the world?
Kuwaiti Dinar or KWD has crowned the highest currency in the world. Dinars is the currency code of KWD. It is widely used in the Middle East for oil-based transactions. 1 Kuwaiti Dinar is equal to 233.75 INR.
