Base currency
We want you to miss a fundamental point:
Now you know that the price of the currency is to be paid from one currency for another currency.
For example: GBP / USD = 1.5
The question is the meaning of the previous version we should have to pay$ 1.5 for one pound, or do I have to pay 1.5 pounds for one dollar?
In this formula: USD / JPY = 120
Does this mean that we must pay120 yen for one dollar or do I have to pay $ 120 for one yen?
Can learn to answer these questions with any kind of currency you have to pay attention to the order status symbols in the formulaThe currency symbol which is placed first in the formula is called the base currency Base currency
And the price is the amount required down payment of the second currency for one unit of base currency.
Remember it well ..
When we say: GBP / USD = 1.5
Faramz Fairy put first in the formula The currency basis in this formula is a Fairy (because the symbol I) means that the price issue in the formula is the amount required down payment of the second currency (the dollar) for one pound (one unit of base currency).
That is, we here Mtabann pay $ 1.5 for one pound.
When we say: EUR / USD = .90
Faramz euro put first in the formula The currency basis in this formula is the euro (because the symbol I) means that the price issue in the formula is the amount to be paid from the second currency (the dollar) for one euro (one unit of base currency).
That is, we are here required to pay 0.90 dollars for one euro.
This rule applies to all currenciesWhen we say: USD / JPY = 120
Faramz dollar here is the first topicSo it is the base currency price quoted topic in the formula is the amount to be paid from the second currency (Yen) for one dollar (one unit of base currency).
Ie we required to pay 120 yen for one dollar.
When we say: USD / CHF = 1.4
The dollar is the currency here is also the base price shall be subject is the required amount of down payment Franc (second currency) for one dollar (one unit of base currency).
What is the difference?You may ask what is the difference between sayingUSD / JPY or to say JPY / USD?
Answer:We said that the currency symbol in the formula is first is the base currency, and we said that the price is the amount required down payment of the second currency for one unit of base currency.
When we say that the USD / JPY = 120
Ie we required to pay 120 yen for one dollar.
This means that every dollar = 120 yen.
When we say the JPY / USD
Here the base currency is the yen, which will be the price quoted is the amount required down payment of the dollar (which is here the second currency) to get the yen and one (here the base currency).
If every dollar = 120 yen, the yen is equal to how much one?Equal to 1/120 yen per any = .008 Dolaroa 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: You must pay 0.008 dollars for yen at the same time.
But when we say USD / JPY, we ask how much of the yen is required to pay (the 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 paid a dollar yen, you have to pay 120 yen for one dollar.
If you want to get the yen and the dollar you pay to be paid $ 0.008 for one yen.
We want you to miss a fundamental point:
Now you know that the price of the currency is to be paid from one currency for another currency.
For example: GBP / USD = 1.5
The question is the meaning of the previous version we should have to pay$ 1.5 for one pound, or do I have to pay 1.5 pounds for one dollar?
In this formula: USD / JPY = 120
Does this mean that we must pay120 yen for one dollar or do I have to pay $ 120 for one yen?
Can learn to answer these questions with any kind of currency you have to pay attention to the order status symbols in the formulaThe currency symbol which is placed first in the formula is called the base currency Base currency
And the price is the amount required down payment of the second currency for one unit of base currency.
Remember it well ..
When we say: GBP / USD = 1.5
Faramz Fairy put first in the formula The currency basis in this formula is a Fairy (because the symbol I) means that the price issue in the formula is the amount required down payment of the second currency (the dollar) for one pound (one unit of base currency).
That is, we here Mtabann pay $ 1.5 for one pound.
When we say: EUR / USD = .90
Faramz euro put first in the formula The currency basis in this formula is the euro (because the symbol I) means that the price issue in the formula is the amount to be paid from the second currency (the dollar) for one euro (one unit of base currency).
That is, we are here required to pay 0.90 dollars for one euro.
This rule applies to all currenciesWhen we say: USD / JPY = 120
Faramz dollar here is the first topicSo it is the base currency price quoted topic in the formula is the amount to be paid from the second currency (Yen) for one dollar (one unit of base currency).
Ie we required to pay 120 yen for one dollar.
When we say: USD / CHF = 1.4
The dollar is the currency here is also the base price shall be subject is the required amount of down payment Franc (second currency) for one dollar (one unit of base currency).
What is the difference?You may ask what is the difference between sayingUSD / JPY or to say JPY / USD?
Answer:We said that the currency symbol in the formula is first is the base currency, and we said that the price is the amount required down payment of the second currency for one unit of base currency.
When we say that the USD / JPY = 120
Ie we required to pay 120 yen for one dollar.
This means that every dollar = 120 yen.
When we say the JPY / USD
Here the base currency is the yen, which will be the price quoted is the amount required down payment of the dollar (which is here the second currency) to get the yen and one (here the base currency).
If every dollar = 120 yen, the yen is equal to how much one?Equal to 1/120 yen per any = .008 Dolaroa 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: You must pay 0.008 dollars for yen at the same time.
But when we say USD / JPY, we ask how much of the yen is required to pay (the 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 paid a dollar yen, you have to pay 120 yen for one dollar.
If you want to get the yen and the dollar you pay to be paid $ 0.008 for one yen.
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