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| 1.
| | == Summary == |
| A term used in foreign exchange rate quotation.
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| Consider the historical FX quote of 1 GBP = USD 1.4598 - 1.4602.
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| The base currency is GBP.
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| The inversion of this FX quote means expressing the same price, but with the other currency as the base currency (USD here).
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| So 1 USD = GBP [1/1.4602] - [1/1.4598]
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| 1 USD = GBP 0.6848 - 0.6850.
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| 2.
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| In any market, the reversal of a normal - or commonly expected - relationship.
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| For example the situation of an Inverse yield curve, where longer maturities of funds are trading at LOWER yields than shorter-dated maturities (being the opposite of the normally expected upward-sloping relationship).
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| == See also == | |
| * [[Base currency]]
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| * [[Foreign exchange]]
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| * [[Inverse quote]]
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| * [[Inverse yield curve]]
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Latest revision as of 09:29, 27 July 2023
Summary
Importing files from local file repository
