I keep getting this wrong Buying a USD/EUR contract for 1 means - I will spend 1 USD to buy 1 euro right? in other words I am buying the currency on the bottom, paying the currency on the top? After this post I’m going to tattoo this on my bicep or something. The proctors are never going to believe someone would be so desperate, so I should get away with it
bump with bells on - anyone like to comment?
Not from CFA curriculum - have no idea why they don’t teach it but Base/Terms In you examplet the base is USD and terms is EUR This is the convestion for quoting FX so 1 base buys you (rate) of the terms currency so for USD/EUR 0.7070 1 USD buys you 0707 Euro USD/JPY 94.77 1 USD buys you 94.77 yen GBP/USD 1.6219 1 Great British Pound(the irony) buys you 1.6219 USD Hope this helps Base currency is sometimes referred to as the commodity currency
I think of the “/” as meaning “per”. 1.46 USD/GBP 1.46 USD per 1 GDP