Forex cross, where am I losing the plot

Posted by Paul Cleverley PM | on Sat, 08/12/2012 - 08:37 527 5 comments | report

Perhaps someone can explain to me where I'm going wrong.

Daily, OANDA send me a cross table of selected currencies, take Thursday 06 December 2012, prices are ask at cash rate:

EUR/GBP = 0.7793

Therefore 1 Euro buys 78 pence

To calculate GBP/EUR I would apply the formula 1/0.7793

This gives me 1 Pound buys 1.28 Euros

YET on the same cross table 1 Pound buys 1.19 Euros

What happened to the other 9 Cents?

Where have I lost the plot?

Comments

There are 5 comments. Login or register to view them.

stepurhan | Sat, 08/12/2012 - 10:36

BKD | Sat, 08/12/2012 - 11:19

Paul Cleverley | Thu, 20/12/2012 - 07:53

paulwakefield1 | Thu, 20/12/2012 - 08:35

Paul Cleverley | Thu, 20/12/2012 - 09:00