We want you to pay attention to the key point:
Learn now that the price of the currency is what you must pay for currency to another currency.
For example: GBP / USD = 1.5
The question is the meaning of the previous version, we should have to pay 1.5 dollars for one pound or must pay 1.5 pounds for one dollar?
In this formula: USD / JPY = 120
Does this mean that we should have to pay 120 yen for one dollar or must pay $ 120 for one yen?
So can learn to answer these questions with any kind of currency, you should take notice of the order of symbols in the formula
The currency symbol placed first in the formula is called the base currency Base currency
The price is the amount required payment of the second currency for one unit of the base currency.
Remember it well ..
When we said: GBP / USD = 1.5
Faramz Fairy put first in the formula The currency basis in this formula is Fairy (because its code first) This means that the price issue in the formula is the amount required batch of second currency (the dollar) for one pound (one unit of the base currency).
We're here Mtabann pay $ 1.5 for one pound.
And when we say: EUR / USD = .90
Faramz euro put first in the formula The currency basis in this formula is the euro (because his character first) This means that the price issue in the formula is the amount to be paid from the second currency (dollar) for one euro (one unit of the base currency).
We're here demanding payment of .90 dollars for one euro.
This rule applies to all currencies
When we say: USD / JPY = 120
Faramz dollar here is the first theme is the base currency, so price quoted subject in the formula is the amount owed from the second currency (yen) for one dollar (one unit of the base currency).
Any that we are required to pay 120 yen for one dollar.
And when we say: USD / CHF = 1.4
The dollar here also is the base currency shall be the price issue is the amount required batch of franc (second currency) for one dollar (one unit of the base currency).
What's the difference?
You might ask what is the difference between say USD / JPY or say JPY / USD?
ANSWER: We said that the currency in which no symbol in the first version is the base currency, and said that the price is the amount required batch of second currency for one unit of the base currency.
When we say that the USD / JPY = 120
Any that we are required to pay 120 yen for one dollar.
This means that every dollar = 120 yen.
But when we say JPY / USD
Here the base currency is the yen price quoted is the amount required will boost the dollar (which is here the second currency) for one yen (here currency basis).
If every dollar = 120 yen, how is equal to one yen?
Equal to 1/120 yen per = $ .008 or less than one cent.
When we say: JPY / USD, we ask how much is required to pay the dollar (the second currency) for one yen (base currency) and the answer will be: to be paid $ .008 for one yen.
But when we say USD / JPY, we ask how much is required to pay Yen (second currency) for one dollar (base currency) and the answer will be:
Must pay 120 yen for one dollar.
Which is correct?
Both are correct and the issue depends on what currency you want to pay and what currency you want to get.
If you want to get and pay $ yen, you have to pay 120 yen for one dollar.
And if you want to get the yen and dollar pay, you should pay $ .008 for one yen
Learn now that the price of the currency is what you must pay for currency to another currency.
For example: GBP / USD = 1.5
The question is the meaning of the previous version, we should have to pay 1.5 dollars for one pound or must pay 1.5 pounds for one dollar?
In this formula: USD / JPY = 120
Does this mean that we should have to pay 120 yen for one dollar or must pay $ 120 for one yen?
So can learn to answer these questions with any kind of currency, you should take notice of the order of symbols in the formula
The currency symbol placed first in the formula is called the base currency Base currency
The price is the amount required payment of the second currency for one unit of the base currency.
Remember it well ..
When we said: GBP / USD = 1.5
Faramz Fairy put first in the formula The currency basis in this formula is Fairy (because its code first) This means that the price issue in the formula is the amount required batch of second currency (the dollar) for one pound (one unit of the base currency).
We're here Mtabann pay $ 1.5 for one pound.
And when we say: EUR / USD = .90
Faramz euro put first in the formula The currency basis in this formula is the euro (because his character first) This means that the price issue in the formula is the amount to be paid from the second currency (dollar) for one euro (one unit of the base currency).
We're here demanding payment of .90 dollars for one euro.
This rule applies to all currencies
When we say: USD / JPY = 120
Faramz dollar here is the first theme is the base currency, so price quoted subject in the formula is the amount owed from the second currency (yen) for one dollar (one unit of the base currency).
Any that we are required to pay 120 yen for one dollar.
And when we say: USD / CHF = 1.4
The dollar here also is the base currency shall be the price issue is the amount required batch of franc (second currency) for one dollar (one unit of the base currency).
What's the difference?
You might ask what is the difference between say USD / JPY or say JPY / USD?
ANSWER: We said that the currency in which no symbol in the first version is the base currency, and said that the price is the amount required batch of second currency for one unit of the base currency.
When we say that the USD / JPY = 120
Any that we are required to pay 120 yen for one dollar.
This means that every dollar = 120 yen.
But when we say JPY / USD
Here the base currency is the yen price quoted is the amount required will boost the dollar (which is here the second currency) for one yen (here currency basis).
If every dollar = 120 yen, how is equal to one yen?
Equal to 1/120 yen per = $ .008 or less than one cent.
When we say: JPY / USD, we ask how much is required to pay the dollar (the second currency) for one yen (base currency) and the answer will be: to be paid $ .008 for one yen.
But when we say USD / JPY, we ask how much is required to pay Yen (second currency) for one dollar (base currency) and the answer will be:
Must pay 120 yen for one dollar.
Which is correct?
Both are correct and the issue depends on what currency you want to pay and what currency you want to get.
If you want to get and pay $ yen, you have to pay 120 yen for one dollar.
And if you want to get the yen and dollar pay, you should pay $ .008 for one yen
0 comments:
Post a Comment