Foreign Exchange: Foreign exchange (FX) is the exchange of one country’s currency for another country’s currency

Ranking

1. Quote Pair (Base/Counter):

2. Rate (Bid / Ask): USD / HKD 7.7753 / 7.7780

3. Spread point: 27 basis point (Ask Price 7.7780 – Bid Price7.7753)差价

4. Quote convention: 53/80 (the last two digits of decimal point) rate约定

5. Direct quote: Bank buy 1 US Dollar and sell 7.7753 HK Dollar to customer

6. Indirect quote: Bank buy 1 Australia Dollar and sell US Dollar to customer

To determine which is Base and which is Counter in a Quote Pair, there is a currency ranking. Based on this currency ranking, the currency which is higher than another one in the ranking is the Base, and another currency is the Counter.(排名高的是base 低的是counter)

Limit Order: An order placed with conditions to buy/sell currencies, such as price range and duration of order validity包括限价买单 ( Buy Limit Order ) 以及限价卖单 ( Sell Limit Order ) 二种形式（价格范围、订单有效期持续）

Market Order: An order without conditions and marked to the market price

Benchmark Order: Order is executed with standard price published by benchmarking company, e.g. WMCompany基准订单

Spot Exchange: The exchange of two currencies for immediate delivery, normally with T+2.

Cross rate calculation: Bid Ask

1.5642

123.78 USD / NZD USD / JPY 1.5650 123.23

NZD / JPY = 123.23/1.5642 = 78.78 (Bid)

NZD / JPY = 123.78/1.5650 = 79.10 (Ask)

NZD / JPY 78.78/79.10