Saturday, May 1, 2010

cross rate calculation

(e.g.)

Foreign Currency / Base Currecy = bid - ask(*)
(*) From a Base Currecy point of view. Ask means buy base currency and sell foreign currency.

USD/GBP = 2.0010 - 20
USD/SFr = 0.8550 - 60

GBP/SFr = 0.8550/2.0020 - 0.8560/2.0010 = 0.4271 - 0.4278

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