What is an exchange rate? How currency prices work
By SendPay Business · · 2 min read
- 1Type in your own numbers
- 2The tool works it out
- 3See the answer clearly
An exchange rate is the price of one currency in another. If the GBP/EUR rate is 1.15, one pound buys 1.15 euros. Rates change all day as currencies are bought and sold around the world.
Why exchange rates move
Rates move with supply and demand. Interest rates, inflation, economic news and politics all change how much people want to hold a currency, and so its price.
The rate you see vs the rate you get
- The mid-market rate is halfway between the buy and sell prices on the wholesale market.
- Providers usually offer a rate a little worse than that, and keep the difference.
- Some also charge a separate fee, so compare the total you'll receive, not just the fee.
Try it
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What it does
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Reading a quote
A quote like GBP/USD 1.27 means one pound costs 1.27 dollars. The first currency is the base and the second is the quote currency. Flip the pair and the rate becomes 1 divided by 1.27.
Where SendPay fits
SendPay platforms include GBP, EUR and USD accounts and exchange between them under your own brand, powered by licensed partners. You can preview your platform before you launch.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
How do I work out a rate between two other currencies?
Get a cross rate from two rates you know.
Currency cross rate calculator →Which currency looks cheap?
Compare prices between countries and find the PPP exchange rate, free.
Purchasing power parity calculator →What does sending money abroad really cost?
Add up the fee and the rate markup.
Money transfer cost calculator →What is the mid-market rate?
The fair rate halfway between buy and sell.
What is the mid-market rate? →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.