Pricing method of new york foreign exchange market

New york's foreign exchange market is completely free. There are two ways to quote the exchange rate: direct quotation (with reference to the pound) and indirect pricing (with reference to the currencies of European countries and other countries), which is convenient for the US dollar to trade in the world. Trading currencies are mainly the currencies of continental Europe, North America, Canada, Central and South America, Far East Japan and other countries.

Due to historical reasons, new york's foreign exchange market has always used the common direct quotation to express the foreign exchange market, that is, converting a certain unit of foreign currency into a certain amount of US dollars. Since 1978, this situation has changed, that is, domestic foreign exchange transactions still adopt direct quotation, but in international foreign exchange transactions, American banks adopt indirect pricing method, that is, based on 1 USD, they exchange a variety of foreign currencies, regardless of premium or discount, the dollar unit remains unchanged, but the number of foreign currencies has changed accordingly. From 65438 to 0978, the United States carried out three reforms on foreign exchange market transactions.

First, it changed the practice that foreign exchange transactions between banks had to go through brokers in the past, allowing direct transactions between banks;

Second, foreign exchange brokers in the United States began to engage in international brokerage activities and can directly accept foreign exchange quotations and bids from foreign banks;

Thirdly, the pricing method of foreign exchange quotation is changed from direct quotation to indirect quotation, which reduces the inconvenience of exchange rate conversion.

These reforms have improved the trading conditions and methods in new york's foreign exchange market, thus effectively promoting the expansion of foreign exchange market business. In addition, some major currencies in continental Europe (such as pound, euro, Swiss franc, French franc, etc. ), as well as Canadian dollar, Japanese yen and Hong Kong dollar, have a large trading volume in new york's foreign exchange market. At present, new york's foreign exchange market occupies an important position in the world foreign exchange market. In fact, it has become the clearing center of US dollar transactions in the world, which has the function of US dollar clearing center and allocation that can't be replaced by any foreign exchange market in the world. The opening and closing prices of the foreign exchange market are based on the new york foreign exchange market. At 4: 00am Beijing time, the last transaction price in new york foreign exchange market was the closing price of the previous day, and the first transaction after that was the opening price of that day.