Generally, a bank has four foreign exchange quotations, namely, foreign exchange cash buying price, foreign exchange cash selling price, foreign exchange cash buying price and foreign exchange cash selling price. Add up their prices and get the middle price of foreign exchange cash and the middle price of foreign exchange cash.
The middle price, also called the intermediate exchange rate, is the average of the buying exchange rate and the selling exchange rate. Its calculation formula is: intermediate exchange rate = (buying exchange rate+selling exchange rate) ÷ 2.
The bid is from the bank's point of view. When you sell foreign exchange to a bank, this is the bank's buying price. You exchange money with the bank and the bank sells it, which is called the selling price; When calculating the foreign exchange quotation, the average of the two is called the middle price. There is also a bill purchase price (also called bill purchase price), which is the price of foreign currency cash you sell to the bank. Because the cost turnover for banks to buy foreign currency cash is greater than that of foreign exchange, the buying price of paper money is much lower than that of foreign exchange. In addition to making money from loans, banks also earn the difference between foreign exchange trading.
Bid price: the price quoted by a bank to buy the benchmark currency.
Selling price: the price quoted by the bank to sell the benchmark currency.