Exchange Rate

Exchange rate, also known as the exchange price, it refers by a country currency being express by another country currency, or it is also the price ratio between both countries currency, generally it is being expressed by using the price proportion of both countries. For instance: USD/JPY=105.40, is being expressed a US dollar equal to 105.40 Japanese Yen, US dollar is also known as the unit currency, the Japanese Yen is known as the price currency.In the foreign exchange market, the exchange rate is demonstrated by five numerals, for example:Euro/US dollar: EUR/USD 1.3325US dollar/Japanese Yen: USD/JPY 104.95Pound/US dollar: GBP/USD 1.9337US dollar/Swiss Franc: USD/CHF 1.2303The exchange rate smallest change unit is, namely a final one-figure number digital change, is called an exchange rate basic point (Pip), abbreviation exchange rate spot, for example:Euro EUR 0.0001Japanese Yen JPY 0.01Pound GBP 0.0001Swiss Franc CHF 0.0001