Currency Conversion - Links

Exchange rates are quoted two ways, American style or European style, as determined by market conventions. When trading currencies, it's essential to understand the differences.

Major currencies quoted in American style terms include the British pound, Australian and New Zealand dollar, and the euro. American style indicates the number of U.S. dollars per foreign currency unit. For example, a quote of 1.60USD/GBP indicates that 1.00 British pound can be converted to 1.60 U.S. dollars.

Most other major currencies not mentioned above are quoted European style, such as the Swiss franc, Japanese yen, and Canadian dollar. European style indicates the number of foreign currency units per U.S. dollar. For example, a quote of 1.30 CHF/USD indicates that for every U.S. dollar converted, investors would receive 1.30 Swiss francs.