How Currency Exchange Rates Work

A practical explanation of currency prices, quote direction, spreads and market movements.

Key idea

A practical explanation of currency prices, quote direction, spreads and market movements. Financial websites can use different data sources, timestamps and quote conventions, so check what each number represents before comparing it with a bank, broker or payment provider.

What to compare

• or market rate
• Timestamp and market session
• Bid/ask spread where relevant
• Provider fees and conversion margins
• Historical period and data source

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Important note

Market and data are informational. They are not a guarantee of a future price and are not financial, tax or investment advice.