BFM Numericals Solved · Part 2: Forex

Chapter 3: Quotes and cross rates

How a dealer’s two prices work, which one applies to a deal, and how two quotes against the dollar give any third.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 3.1Two currencies, one pricep. 43
• 3.2Two-way quotes: bid and offerp. 44
• 3.3Points and shorthand quotesp. 45
• 3.4Turning a quote roundp. 46
• 3.5Appreciation and depreciationp. 47
• 3.6Cross ratesp. 48
• Four 30-second routesp. 50
• 3.7Triangular arbitragep. 51
• 3.8Value dates: cash, tom and spotp. 52
• Which formula? A map of the chapterp. 53
• Exam traps and conventionsp. 54
• Practice: 30 questions in three roundsp. 55
• Answers, with every wrong option explainedp. 58
• Make it stickp. 61
• Chapter 3 on one pagep. 62

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.