Currency & Forex
Basic

Inverse Exchange Rate

Flip a quoted rate to express it from the other currency’s point of view.

Formula

RateB/A=1RateA/BRate_{B/A} = \dfrac{1}{Rate_{A/B}}

Variables

Rate_{B/A}Inverse rate
Rate_{A/B}Quoted rate

Example

USD/EUR 0.92 → EUR/USD = 1/0.92 = 1.087

Did You Know?

A small rounding error in an inverse rate can create phantom arbitrage that vanishes once fees are added.

inverseexchange rateforex