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bijoy

bijoy (Querist)
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18 March 2009 im confused about d direct an indirect quote,bid ask rate in forex pls help. urgent

Tushar Yerawar

Tushar Yerawar (Expert)
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18 March 2009 Direct Quote - No. of units of Domestic Currency per unit of foreign currency.

Indirect Quote - No. of units of Foreign currency per unit of Domestic currency.

For E.g. Rs.50 per $.

If this is a Direct Quote then Rupee (No. of units of rupees) will be the Domestic currency and USD will be the Foreign Currency (Per unit of USD).

BID Rate - The rate at which Authorised dealer will purchase the given currency.

Ask rate - The rate at which Authorised dealer will sell the given currency.

Say Rs.50.5100/50.9000 per USD

Here, AD will buy USD @ Rs.50.5100 and sell USD @ Rs.50.9000.

Always remember the given quote is from the point of view of dealer and not an exporter or importer

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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18 March 2009 If a quate is expressed in indian currency basis then it become the direct quate.

example.......Rupee per Dollar....this means for buying a dollar how much rupee you have to pay........

In this case the dollar become the prodduct

IF a quate is expressed in foreign currency then it is indiret quate........

Dollar per rupee..........

Bid rate is a rate at which currency can be purcahsed by the authoRISED DEALER. the rate in which we can sell the currency .....

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bijoy

bijoy (Querist)
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19 March 2009 thank u.