Indirect Quote
An indirect quote is a type of currency exchange rate that is quoted in terms of the amount of foreign currency required to purchase one unit of the domestic currency. This type of quote is also known as a “foreign exchange rate” or “FX rate”. It is the opposite of a direct quote, which is the amount of domestic currency required to purchase one unit of foreign currency.
History of Indirect Quote
The concept of indirect quotes has been around since the early days of currency trading. In the past, traders would use indirect quotes to determine the value of a currency in relation to another. This was done by comparing the amount of foreign currency required to purchase one unit of the domestic currency. This type of quote is still used today, but it is now more commonly referred to as a “foreign exchange rate” or “FX rate”.
In the modern era, indirect quotes are used to determine the value of a currency in relation to another. This is done by comparing the amount of foreign currency required to purchase one unit of the domestic currency. This type of quote is used by traders, investors, and other market participants to determine the value of a currency in relation to another.
Comparison Table
| Currency | Direct Quote | Indirect Quote |
|---|---|---|
| USD/EUR | 1.20 | 0.83 |
| EUR/JPY | 125.00 | 0.008 |
| GBP/USD | 1.35 | 0.74 |
Summary
An indirect quote is a type of currency exchange rate that is quoted in terms of the amount of foreign currency required to purchase one unit of the domestic currency. This type of quote is used by traders, investors, and other market participants to determine the value of a currency in relation to another. For more information about indirect quotes, you can visit websites such as Investopedia, Bloomberg, and the International Monetary Fund.
See Also
- Direct Quote
- Currency Exchange Rate
- Foreign Exchange Rate
- FX Rate
- Cross Rate
- Spot Rate
- Forward Rate
- Currency Pair
- Currency Swap
- Currency Futures
