{"id":179446,"date":"2021-05-12T14:05:00","date_gmt":"2021-05-12T18:05:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/glossary-terms\/exchange-rate\/"},"modified":"2025-04-14T15:12:49","modified_gmt":"2025-04-14T19:12:49","slug":"exchange-rate","status":"publish","type":"glossary-terms","link":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/exchange-rate\/","title":{"rendered":"Exchange Rate"},"content":{"rendered":"\n<p>An <strong>exchange rate<\/strong> is the price at which one currency can be exchanged for another. It tells you how much of one currency you need to get a certain amount of another currency. Exchange rates are determined by various factors such as supply and demand, interest rates, inflation, and economic conditions of the countries involved.<\/p>\n\n\n\n<p>For example, if the exchange rate between the U.S. Dollar (USD) and the Euro (EUR) is 1 USD = 0.85 EUR, it means that for every 1 U.S. Dollar, you would receive 0.85 Euros.<\/p>\n\n\n\n<p>Exchange rates can either be <strong>fixed<\/strong> (set by governments) or <strong>floating<\/strong> (determined by market forces).<\/p>\n\n\n\n<p>IBKR uses the midpoint of the bid\/ask for currency pair exchange rates as reported by Reuters just prior to 4:00 PM ET. These rates can be viewed in the Base Currency Exchange Rate section of daily Activity Statements, which are accessible through the Client Portal under Performance &amp; Reports &gt; Statements. The statements show the date\/time, from currency, to currency, and the applicable exchange rate for the reporting period.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Forex terms, this is the value of a country\u2019s currency relative to other nations.\u00a0 To convert the exchange rate for buying a currency to the exchange rate for selling a currency, or vice versa, divide the known rate by 1. In the Market Value &#8211; Real FX Position section of the TWS\u00a0Account Window, this is the current exchange rate to the base currency.<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"traders-glossary":[13254,13251],"class_list":{"0":"post-179446","1":"glossary-terms","2":"type-glossary-terms","3":"status-publish","5":"traders-glossary-trading-terms-e","6":"traders-glossary-trading-alphabet"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Archives Term | IBKR Glossary | IBKR Campus<\/title>\n<meta name=\"description\" content=\"An exchange rate is the price at which one currency can be exchanged for another.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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