A currency quotation always expresses one currency in units of another, but the label attached to that quotation depends on whose domestic currency is being used as the reference. For a US-based observer, USD/CAD and CAD/USD describe the same relationship from opposite directions. Calling one direct and the other indirect is a matter of perspective, not a permanent property of either pair. For readers asking what is forex trading, that distinction matters when converting prices, interpreting a stronger currency, and entering CFDs whose symbols follow international market conventions rather than…
Read MoreUnderstanding the Difference Between Direct and Indirect Currency Quotations
