Currency Converters Key Terms
Deepen your knowledge of currency converters by diving into these key termsCurrency converters give you the power to see how much one country's money is worth in terms of a different country's currency. As technology has improved, currency converters became more accurate. Companies now update converters regularly to reflect the latest exchange rates and market events. In practice, currency converters are easy to use, but knowing how they work means you'll need to understand the foreign exchange. A good place to start is by knowing currency converters key terms.
Exchange rateThe exchange rate is a ratio that expresses the value of one currency in terms of another. Currency converters use the exchange rate to calculate how much foreign currency you can buy with what you already have.
Mid-market currency rateA mid-market rate falls somewhere between a currency's buy rate and sell rate. It's supposedly a more accurate reflection of the currency's value, since it doesn't take into account each exchange provider's profit margins and overhead.
DinarThe dinar is the official currency of many Central Asian and African countries. Iraq, Kuwait, Jordan and Tunisia all use the dinar, making it an important currency in the Arabic economic region.
Currency data feedSometimes abbreviated CDF, a currency data feed is a real-time Internet stream containing exchange rates and other important financial data. These are valuable time-savers for businesses that rely on the foreign exchange for pricing, trades, and decision-making.
Troy ouncesCompanies don't measure gold, silver and other precious metals in traditional ounces. Instead, they use Troy ounces, which are 12 ounces to the pound instead of 16. This is important to remember when converting currency into gold.
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