I’m stumped on the language and wondered if someone here may have some rules of thumb that helped you get this through your head.
Economics section, specifically 629-631 in Volume 1 of the CFAI curriculum. The following statements are made in a couple of places on those pages
> “…bought GBP for delivery against the AUD…” - currency quoted as AUD/GBP
> “…sell the CHF six month forward against the GBP…” - Currency quoted as CHF/GBP
> “…selling the NZD 10 million forward against the USD…” - currency quoted as USD/NZD
I’ve got myself thoroughly confused about what exactly this phrase means. When I sell one currency against another currency…honestly I can’t even type if out I’ve got myself so confused.
Any thoughts on how to get used to this or how to understand it better in terms of the price/base currency?