dollar (USD), Euro (EUR), Japanese yen (JPY), British pound (GBP), Australian dollar (AUD), Canadian dollar (CAD), and the Swiss franc (CHF). Major Currencies-This refers to a short list of the most traded currencies, which generally stay the same year-to-year. Interbank (bank-to-bank) Rate-This is the wholesale exchange rate that banks use between themselves. The first currency in a currency pair is called the base currency, while the second is called the quote currency. A pip is sometimes called a point.Ĭurrency Pair-A quote of the relative value of one currency unit against another currency unit. For example, 3 pips are the difference between the currency quote of EUR/USD 1.2800/1.2803. Pip-A pip is the smallest unit of value in a bid-ask spread. Some call this profit a fee or commission. As financial middlemen, most will set exchange rates of their own at bid-ask spreads that return a percentage as profit for doing business. Real-world currency exchanges with brokers, banks, or businesses typically do not follow precise market rates. Theoretically, buyers want the smallest possible spreads, while sellers want the highest spreads. The forex is able to facilitate the receipt or payment of units of currency that are equal in value.īid Price-The price that a buyer is willing to pay for a unit of currency.Īsk Price-The price that a seller is willing to accept for a unit of currency.īid-Ask Spread-The difference between the bid and ask price. This market is a necessity because one unit of currency very rarely equals exactly one unit of another currency. If you have questions or would like additional help with your money transfer, our currency experts are available by phone and online to walk you through the process and address any questions.Below is a short list of some of the important terms pertinent to foreign currency exchange.Įxchange Rate-The value of one currency expressed in terms of another.įorex-The foreign exchange market (forex) is a global, decentralized, over-the-counter market for the trading of currencies and is the largest market in the world (followed by the credit market). We know that initiating an international money transfer online can be nerve-wracking, and we want to ensure that you have everything you need to feel safe and confident throughout the process. You’ll never wonder where your money is: we’ll communicate with you every step of the way, and you can track the status of your money transfer in our app. Once the transfer is confirmed, it will travel quickly, with many of our transfers completing within the day. You can initiate a money transfer on our website and in our mobile app 24/7, within just a couple of minutes. Ready to send money? It’s a quick process. Our rates are accurate to the minute, and we also have a trove of historic currency data from the last 10 years. You can check live mid-market exchange rates for all major global currencies on the Xe Currency Converter. Looking to know the exchange rate from the Pound sterling to the Indian rupee, right at this second? We have the answers for you. Whether you’re in search of competitive rates or a quick money transfer across the world, we want to give you a seamless experience that will help you save time and money. For over 25 years, individuals and businesses around the world have trusted Xe with their international money transfer and foreign currency needs.
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