View source for Archive:Foreign Exchange Risk Mitigation Techniques/Foreign Exchange Trading

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The exchange of one currency for another currency, dollars (USD) for Japanese yen (JPY), is the basic definition of foreign exchange.  There are two different types of quotations: 

*Indirect quotation - The price of a national currency expressed in terms of one unit of a foreign currency
*Quoting Japanese yen at a rate of 110 
*1 USD = 110.00 JPY
*Direct quotation - The value of one unit of national currency in terms of the foreign currency
*Quoting USD at a rate of .009091
*1 JPY = .009091 USD.

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[[Category:International business]]