Between direct and indirect quotations of the inverse relationship exists:

The display of exchange rates of a large bank of any country is induced by the dollar against other currencies that is, represented by direct quotation.

For the British pound has historically maintained an indirect quotation, so the string GBP in this table is read as follows:

– Cross-rate is the ratio between the two currencies in relation to third currencies.

For example, on April 10, 2012 Bank of Russia[38] set for accounting purposes and customs payments the following rates:

The most common is separation of currency transactions in cash and term. The first is also called the overnight (overnight). In this case we are talking about the provision of goods (currency) at the time of the transaction or within a few days, in the second – about the time lag between the date of the transaction and its implementation.

Transactions on a «spot» (spot – cash, instant) made at the rate established at the time of the agreement, and the supply of currency no later than the second enterprise day. Delayed pay increases progressively fine-interest.

At the heart of deals «spot» is based on correspondent relationships among banks.

– The spatial arbitrage. This foreign currency transaction had to start spontaneously dealers. Profit arises from differences in the courses on various foreign exchange markets.

Under normal conditions, currency trading is, in its macroeconomic consequences, to a positive phenomenon, because it promotes the equalization of market rates. But inflation in the atmosphere an additional influx of a particular currency may cause the exchange rate distortions.

In a simple arbitrage interact two counterparties. Buyer shall pay from their bank accounts, dealer – acting on the orders of the first (or in conjunction with them) – accrues revenue. Their foreign exchange reserves as a whole does not change.

Complex or the conversion arbitrage involves working with a number of currencies in different markets. The study of the geography of currency rates reveals a point relative to cheaper foreign currency purchase. Broker like climbing the stairs, exchanging currency purchased on the third and fourth. And back to the original currency is not necessary.

Arbitration profit extremely unstable and conversion operations involve a risk to stay in the position outright in any link.

– Cross-operation – this is the equation of one currency to another through a third – the National, the country where the transaction or that the fairly widespread in world currency markets, through a preliminary equalization rates to the dollar.

In Russia, the cross-denominated transactions are carried out mediation when dealing with «soft» currencies.

Cross – the operation used a combination of foreign exchange purchase and sale of securities.

But the use of cross-operation is fraught with the risk of exchange rate changes between the first and second acts of the transaction. Sometimes, to avoid losses, it is necessary to involve a third or fourth transaction currency.

Urgent or forward contracts are two-fold objective: profit-in the form of foreign exchange and insurance of participants against currency risks.

Emergency surgery for the sale (purchase) of foreign currency consists of the following conditions:

– The course of the transaction is recorded at the time of its conclusion;