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Inverted currency pairs. (How?)

  • #1
  • First Post: Jul 29, 2017 12:42am Jul 29, 2017 12:42am
Hello all, (first thread)

I've noticed some agencies quote inverted currency pairs. For example EUR/USD becomes USD/EUR.

I'm wondering how they achieve this rate? How they calculate it?

If we know that AUD/USD = .79865. How do we calculate what USD/AUD is? It says 1.25145 on XE, yet I'm unsure how they arrive at this number.

Any help appreciated.

Regards,
A
Humans are naturally hardwired to avoid and detest uncertainty.
  • #2
  • Jul 29, 2017 1:01am Jul 29, 2017 1:01am
maybe ?

USDAUD (bid) = 1/AUDUSD (ask)
USDAUD (ask) = 1/AUDUSD (bid)
  • #3
  • Edited 3:54pm Jul 29, 2017 3:41pm | Edited 3:54pm
Quoting CannonScout
Hello all, (first thread) I've noticed some agencies quote inverted currency pairs. For example EUR/USD becomes USD/EUR. I'm wondering how they achieve this rate? How they calculate it? If we know that AUD/USD = .79865. How do we calculate what USD/AUD is? It says 1.25145 on XE, yet I'm unsure how they arrive at this number. Any help appreciated. Regards, A
Just math. No special forex calculation.

Easiest way to find inverse of a number is to: 1-convert to a fraction then; 2-flip the numerator & denominator.

Example 1: (Inverse of .5 is .....)
1-Fraction for .5 is 5/10
2-Inverse is 10/5 = 2

Example 2: (Inverse of AU .79896 is ....)
1-Fraction for .79896 is 79,896/100,000
2-Inverse is 100,000/79,896 = 1.25162
OR:
1-Fraction for .79896 is .79896/1
2-Inverse is 1/.79896 = 1.25162

Example 3: (Inverse of EU 1.17514 is ....)
1-Fraction for 1.17514 is 1.17514/1
2-Inverse is 1/1.17514 = .85096

End of today's math lesson.
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  • #4
  • Last Post: Jul 30, 2017 2:26am Jul 30, 2017 2:26am
Quoting srt
{quote} Just math. No special forex calculation. Easiest way to find inverse of a number is to: 1-convert to a fraction then; 2-flip the numerator & denominator. Example 1: (Inverse of .5 is .....) 1-Fraction for .5 is 5/10 2-Inverse is 10/5 = 2 Example 2: (Inverse of AU .79896 is ....) 1-Fraction for .79896 is 79,896/100,000 2-Inverse is 100,000/79,896 = 1.25162 OR: 1-Fraction for .79896 is .79896/1 2-Inverse is 1/.79896 = 1.25162 Example 3: (Inverse of EU 1.17514 is ....) 1-Fraction for 1.17514 is 1.17514/1 2-Inverse is 1/1.17514 = .85096 End...
Thanks mate.

That was extremely useful.

A
Humans are naturally hardwired to avoid and detest uncertainty.
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