Exchange Rates

Exchange rates display how much of one unit of currency can be exchanged for another unit of currency. These rates can be either floating or pegged. Floating exchange rates are the most common, and these rates depend on several economic factors. Pegged exchange rates are when a government artificially maintains a predetermined rate and it is adjusted only at certain predetermined intervals. This is most often seen in countries with emerging markets.

Currency

Currency is a medium of exchange for the purchase of goods and services. Base currency is the first currency quoted in the exchange rate of a currency pair. Take GBP/USD for instance. The pound is the base currency and the dollar is the quote currency. The exchange would be how many dollars, or quote currency, are needed to purchase one pound, or one unit of base currency. Currency is traded on the foreign exchange market, also known as Forex.

Forex

Forex is open 24 hours a day and is the most heavily traded market in the world. You can participate in the market yourself or seek the help of a broker. The exchange between the pound and the dollar on the Forex market is typically called the cable. This is because of the history of exchange rates being transmitted via the trans-Atlantic cable.

Conversion

References

More Like This

How Many Dollars Is One Pound Worth?

You May Also Like

Converting British pounds to United States dollars can be necessary in several instances. How to Convert United States Dollars to British.

How to Convert British Pounds to U.S. Dollars. Many people exchange their money into the local currency when abroad. Travelers can benefit.

How to Convert United States Dollars to British Pounds. Go to Forex's currency exchange site (see References) and check the current rates.

Converting U.S. dollars to British pounds is a matter of checking the daily exchange rate and doing the math. Both currencies are.

British Pounds to U.S. Dollars Conversion. Converting British pounds to United States dollars can be necessary in several instances.

British sterling goes by various names, including pounds sterling, the British pound, the United Kingdom pound, UKP, STG, the English pound, British.

You will also need to know how to determine and calculate the exchange rate between US dollars and British pounds, which is.