Glossary from Hedgeflows

Exchange Rate

Written by HedgeFlows | 9/12/22 7:23 AM

Exchange rate is the rate at which one currency will be exchanged for another. A conventional way to express currency exchange rates is to express conversion rates in units of the second currency (called Quote currency or Counter currency) for 1 unit of Base currency.  For instance, a quote of GBPUSD = 1.0500 means that one Pound Sterling (GBP) is worth 1.05 US Dollars.