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Buying or selling my currency

This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.

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September 8, 2022 at 12:04 pm #665746
jbishop2019
Member
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I can’t get my head around this. What determines whether I sell my currency or whether I’m buying the foreign currency. So example is in 4 months time I need to pay $5m. Would I be selling GBP at the sell rate to effectively get dollars, or would I be buying $ at the buy rate? Is it whichever rate is the worst for me? I’m so confused
September 8, 2022 at 4:58 pm #665774
John Moffat
Keymaster
- Topics: 57
- Replies: 54738
It depends which way round the exchange rate is quoted.
I suggest that you watch the first of my free lectures on foreign exchange risk management where I spend time explaining what rates to use.
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