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Unformatted text preview: lled base
currency – may see it as “product”)
The second currency is the terms currency – may see it as money)
– Example: Australian dollar/euro may be expressed as EUR/AUD1.6755–
1.6765, usually abbreviated to EUR/AUD1.6755–65 (base/term = one unit/split units)
Euro is the base currency and Australian dollar is the terms.
Customer can sell EUR1 with AUD1.6755
Or Dealer can buy EUR1 with AUD1.6755
(Take note that EUR takes 1 unit here – base or product, and AUD takes split units, term or money here. It
is more convenient to think that people are buying or selling EUR here, not buying or selling AUD as
described above) Customer can buy EUR1 with AUD1.6765
Or Dealer can sell EUR1 with AUD1.6765
(More convenient, we as customers, buy or sell each unit of EUR “product” here with AUD 1.6765 or
1.6755 as price or “money”.)
(Customers sell low but buy high, while dealer buy low sell high of base ccy, “product”.) • Remember: – the rates are determined by (and shown with respect to)
the dealer, not the customer.
– when you are faced with the buying and selling rates for
• the lower rate will always be the dealer’s rate...
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This document was uploaded on 02/13/2014.
- Fall '13