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How's this different from in FX where someone buys EURUSD in USD quantity? Venues trade EURUSD not USDEUR. So they want to trade 1000 dollars. Current fx rate i
by egwor 6y ago
How's this different from in FX where someone buys EURUSD in USD quantity? Venues trade EURUSD not USDEUR.
So they want to trade 1000 dollars. Current fx rate is 1.18162. So that's 846.2957634434 euros. Minimum settlement in euros is 1 cent, so what is done with the 0.57 of a euro cent or what happens to the difference between 1000 USD and 999.9931898? I think the answer to this is bankers rounding.
- cm2187 6y agoIt's called an "FX Rate" not an "FX price". You apply a rounding as part of the transaction. The amount settled is not a rate, it is a monetary amount. The price quoted on the market is the amount settled for one share. If it is not, then it is not really the price of one share.