Sir could you kindly confirm if my understanding of this is correct.
Direct quote will be where domestic currency is the quoted currency and indirect is where domestic is the base currency.
From point of view of the bank if rate is a direct quote, selling rate will be higher than the buying rate. And if indirect, selling rate will be lower than the buying rate.
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Direct and Indirect quotes
9y ago#1You don't need to bother about the rems 'direct' and 'indirect'.
How to decide which rate to use, and how to apply the rate, is dealt with in great detail in my free lectures on foreign exchange risk management.
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