Posted by forex at 1:19 AM
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1. Identify the buying and selling currency. For instance, if you are in Britain and an American importer wishes to pay in Euros, he will buy Euros and sell dollars. You need to know the asking rate for dollars and bid rate for Euros.
2. Obtain relevant exchange rate data in terms of the vehicle currency, which is pounds (see Resources). Exchange rates vary continuously.
3. Divide the asking rate of the first currency by the bidding rate of the second:1.589 $/£ / 1.200 €/£= 1.325 $/€