Hi there, sorry if my question seems uninteresting among all the hot topics on here, but I need help with a financial question and I can't seem to find an answer anywhere, so maybe one of the financial experts on here could help me:
On Yahoo Finance, there is a posted exchange rate for USD/EEK of 11.66: http://finance.yahoo.com/q?s=usdeek=x
Local exchange places exchange at no more than 11.10.
The difference on $100k is significant (cost of a studio apartment in the home country of that currency!).
Question is...WHERE CAN I EXCHANGE AT THE POSTED YAHOO FINANCE RATE?? Does anyone know? Thanks!
Yahoo quotes are 15mins delayed (at the best of times) and not the best for currency.
Best price I can get is 11.19.
If its a once-off transaction, best place to start is the Bank. You can usually negotiate the spread/commission with them in person, based on buying power.
If its for frequent trading, find a (reputable) broker that offers it as a usd cross or futures/options contract.
Yahoo quotes are 15mins delayed (at the best of times) and not the best for currency.
Best price I can get is 11.19.
If its a once-off transaction, best place to start is the Bank. You can usually negotiate the spread/commission with them in person, based on buying power.
If its for frequent trading, find a (reputable) broker that offers it as a usd cross or futures/options contract.
Hi Contrarian, thank you for responding!
May I ask where you're getting 11.19 ?
The bank is quoting 11.07 as of today. That's why I was wondering where 11.66 on Yahoo is coming from... If I understand you correctly, there is actually no way to exchange at 11.66... but it escapes me then why they're posting that rate and where it's coming from. Thanks!
Hi Contrarian, thank you for responding!
May I ask where you're getting 11.19 ?
The bank is quoting 11.07 as of today. That's why I was wondering where 11.66 on Yahoo is coming from... If I understand you correctly, there is actually no way to exchange at 11.66... but it escapes me then why they're posting that rate and where it's coming from. Thanks!
Hey there MarkTrader2009,
I got it from my trading platform.
YahooFinance use mid-market pricing that is 15-20 minutes delayed and come from various sources that they take feeds from.
How they got to that price, beats me :-P
The only way to exchange at that price, is when the party you want to exchange with actually quotes that price. Simple as that.
Like I said, if you have enough negotiation strength with the bank, they may give it to you, or perhaps a fixed forward swap of some kind.
But for instant exchange in order to profit, you may be stuck till the prices quoted are the prices you want.
Contrarian,
Thanks for your help, I understand Yahoo is 15-minute delayed, but the rate they were quoting is not even in the ballpark of what the banks have been offering over the past few months, that's why I was curious as to where they got it. This is for a personal 1-time transaction and I am very curious because the difference is very significant. Yes, the banks do have a "preferred exchange rate" but it's not very much higher: for example when the posted rate is 11.07, they will exchange a large amount at 11.11. Today it's gone down to 11.01 due to a weakening dollar =( Thanks again!
Hi there, sorry if my question seems uninteresting among all the hot topics on here, but I need help with a financial question and I can't seem to find an answer anywhere, so maybe one of the financial experts on here could help me:
On Yahoo Finance, there is a posted exchange rate for USD/EEK of 11.66: http://finance.yahoo.com/q?s=usdeek=x
Local exchange places exchange at no more than 11.10.
The difference on $100k is significant (cost of a studio apartment in the home country of that currency!).
Question is...WHERE CAN I EXCHANGE AT THE POSTED YAHOO FINANCE RATE?? Does anyone know? Thanks!
In the real world there are 3 different exchange rates; the nominal rate, the cash rate and the cheque rate.
The nominal rate is the median between what buyers are asking for and sellers are willing to pay. This is the rate that is published and perhaps the biggest bankers will actually get trades at that price.
The cash rate is what the bank will trade paper cash at. The cheque rate is a bit better because the risk of counterfeit paper is removed from the equation.
The difference between the published nominal rate and what you will get in the real world varies on what currencies are being traded and the institution you are dealing with. Larger volumes means more competition and pressure to trade on smaller commissions. On the other hand, unusual trades will cost much more.
You can always get a better deal if you cut out the middleman. Practically that means that you need to hook up with someone who needs the inverse of you. Of course it's rare that someone outside the banking business will know that complimentary trader so the banksters are there to rip you off at those crappy rates.
Here are the practical numbers as they apply to my trading. This page won't relate to your needs but it clearly illustrates how you get less than advertised as nominal rate. http://www.royalbank.com/rates/cashrates.html
For example, right now the RBC will pay
1.0850 CAD for each USD bought and charge
1.1430 CAD for each USD sold while the nominal rate is
1.1134 (calculated using gold prices in three markets)
How can I get the posted currency rate?
Hybrid Mode
