What is indirect quote in Forex Trading?

Table of Contents

It is currency quotation that express the variable volume of foreign currency required to buy or sell fixed units of domestic currency in foreign exchange market. The indirect quote is also called quantity quotation, because it express the quantity of foreign currency needed to buy or sell domestic currency. In other words, the foreign currency is the counter currency while domestic currency is the base currency in indirect quote.

The indirect quote is reciprocal or opposite of direct quote. In indirect quote, a lower exchange rate express that value of domestic currency is becoming weaker or depreciating. Its means small amount of foreign currency is required to buy or sell domestic currency. While in direct quote, lower the exchange rate means, the value of domestic currency is becoming stronger or appreciating.

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