Forex Bid-Ask convert, someone, always, better, easier

Andreas42

Does anyone else find it easier to just always convert all Forex Bid-Asks to

Target Currency / Currency on Hand

or does someone else have a better way of keeping track of Forex Bid-Ask transactions?

tianxin

I work on an FX trading desk and believe me even I find the way they quote currencies in the CFA confusing! I started off converting everything into "market convention" (EUR/USD, USD/JPY, USD/CAD, etc....where EUR/USD is the USD amount per EUR), but then I ended up getting totally confused with the calculation of the party relationships, so I actually think it might be easier to just follow the CFA text and memorize it. If in doubt, it is always best to make up a quick example to check...

Kapie

Got it,

Thanks for the input!

troymo

kingstongal...to me, the way the CFAI quotes currencies is very logical USD/EUR is USD per Euro or EUR:USD. USD divided by EUR with EUR being 1.

The way FX trading desks quote currencies are confusing...EUR/USD as USD per EUR is counterintuitive to me.