CURRENCY CONVERTER UK HOW TO

With so much choice, it means that you can spend time to find the best exchange rate in the market. There are a lot of foreign currency providers in the UK, offering you a range of products and services. We are constantly striving to improve our systems and processes to make them more efficient, meaning that you get the best value for your travel money exchange rates from us.įind out more on spot rates and tourist rates here.ĭoes it pay to shop around and compare rates? There is a cost to doing this, which means that the value of the currency is affected to cover all of said cost.Īt Travelex, we work to provide you with the best value on your foreign currency as possible. There are a lot of processes and people involved in providing currency into your hands. The market (or spot) exchange rate, is the rate at which banks exchange currencies.

Why are tourist money exchange rates not the same as the market spot rate? These movements can be caused by supply and demand, as well as by political and economic events. Why do currency exchange rates fluctuate?Ĭurrencies constantly move up and down against each other as financial markets change.

Spread – This is the difference between the buy and sell rates offered by a foreign exchange provider such as us.In the business, this is sometimes referred to as a ‘spot rate It is the rate banks or large financial institutions charge each other when trading significant amounts of foreign currency. Spot rate – This is known more formally as the ‘interbank’ rate.For example, if you were heading to Europe, you would exchange British pounds for euros at the sell rate. Sell rate – This is the rate at which we sell foreign currency in exchange for local currency.Holiday money rate or tourist rate – This is another term for a sell rate.It is often denoted like this: GBP/USD, EUR/JAP, AUD/INR Currency Pair - This the the relationship between two country's currencies.For example, if you want to exchange Australian dollars into US dollars. Cross rate – This is the rate we give to customers who want to exchange currencies that do not involve the local currency.Commission – This is a common fee that foreign exchange providers charge for exchanging one currency with another.For example, if you were returning from America, we would exchange your US dollars back into British pounds at the buy rate of the day. Buy rate – This is the rate at which we buy foreign currency back from you into your local currency.

CURRENCY CONVERTER UK HOW TO

How to read exchange rates - currency jargon explainedįoreign exchange can be confusing, so to help break through the confusion, here are some common terms associated with currency: If a currency is not competitively priced, traders may avoid buying, or even sell it, essentially driving down its value. If a currency is competitively priced, traders will buy the currency, essentially driving up its value. The value (or price) of a currency is determined by its traded volume. Government central banks also have the ability to set a currency at a constant price through a method called pegging, which essentially tethers the value of one currency to another. The volumes of currencies traded are increased and decreased depending on the attractiveness of any particular currency, which depends on a multitude of factors such as political stability, economic strength, government debt and fiscal policy among others. One currency can be purchased by another currency through banking institutions or on the open market. Currencies are traded (bought and sold) daily around the world. Exchange rates are influenced by banks and trading institutions and the volume of currency they are buying and selling at any given time.

Currency converter uk