Bid and Ask Rate

With this topic, Forex has started, In Forex market, there are two rate is available at a single time. One want to buy and another want to sell. Buying rate is BID rate and selling rate is ASK rate. All the transactions of Forex held in respective of bank perspective not customer. 

In numerical problem, 

we will see the direct quote rate as 1USD= 68.03/45, as per bank view, bank will buy USD by giving Rs. 68.03 (Buying Rate/Bid Rate) and if need to sell then rate will be Rs.68.45(Selling Rate/ Ask Rate)

It is a thumb rule and lowest price is bid rate or buying rate and higher one is Selling Rate or Ask Rate.

Read the Quotes  USD/INR= US dollar per INR in general way but it is not confirm, you should know which currency is premium in market. 

e.g. USD/INR=  68.03/45   BID RATE= 68.03 AND ASK RATE= 68.45

   

If we want to derive INR/USD then  BID RATE= 1/ASK RATE 

Now Bid Rate=1/68.45=.01460 and Ask Rate= .01469 

hence INR/USD= .01460/.00009