Indirect Quote

An indirect quote is a way of expressing the price of a foreign currency in terms of the domestic currency. For example, if the exchange rate between the U.S. dollar and the euro is 1.20, then the indirect quote for the euro would be $1.20/€.

The indirect quote is the reciprocal of the direct quote. The direct quote is the price of a foreign currency in terms of the domestic currency. For example, if the exchange rate between the U.S. dollar and the euro is 1.20, then the direct quote for the euro would be €0.83/\$.

The indirect quote is often used in the United States, while the direct quote is more common in Europe. This is because the U.S. dollar is the base currency for most foreign exchange transactions, so it is more convenient to express the price of other currencies in terms of dollars.

The indirect quote can be confusing for beginners because it is not the same as the price of a foreign currency. For example, if the indirect quote for the euro is $1.20/€, this does not mean that you can buy one euro for $1.20. Instead, it means that you can buy one dollar for €0.83.

To convert an indirect quote to a direct quote, simply divide the price by the exchange rate. For example, if the indirect quote for the euro is $1.20/€, then the direct quote would be €0.83/\$.

To convert a direct quote to an indirect quote, simply multiply the price by the exchange rate. For example, if the direct quote for the euro is €0.83/\$, then the indirect quote would be $1.20/€.

The indirect quote is a useful tool for comparing the prices of different currencies. However, it is important to understand how it works before using it.