Series 34 Exam » Definitions & Terminology » Direct Quote & Indirect Quote

Direct Quote & Indirect Quote

Direct Quote

This is the amount of one currency (the local currency) needed to purchase one unit of a foreign currency.  Domestic currency is the base currency and is in the terms of one unit.

Indirect Quote

This is the amount of one currency (the local currency) you get when you sell one unit of a foreign currency.  Domestic currency is the counter currency and is in the terms of one unit.

→ EXAMPLE:

For US person a direct quote would be USD/EUR.

For US person an indirect quote would be EUR/USD.

Direct quotation: 1 foreign currency unit = x home currency units

Indirect quotation: 1 home currency unit = x foreign currency units

For more information see: http://en.wikipedia.org/wiki/Exchange_rate

Study Guide >> Definitions and Terminology >> Direct quotes, Indirect quotes

This entry was written by vbala, posted on June 1, 2009 at 5:28 pm, filed under Definitions & Terminology. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Post a comment or leave a trackback: Trackback URL.

One Comment

  1. Josh
    Posted November 4, 2010 at 1:16 am | Permalink

    Direct quotation is 1 home currency units = X foreign currency unit. or home much foreign currency equale to 1 home curreny unit ..

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