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Request For Quote

In FX, a Request for Quote (RFQ) is a formal request made by a buyer to an FX provider, broker, or bank to obtain a price quote for a specific currency pair transaction. The RFQ can be submitted electronically or manually and provides the current rate at which the provider is willing to execute the trade.

  • Simple Example: TechCorp needs to convert $500,000 USD into euros. They submit a Request for Quote (RFQ) to their FX provider to get the current EUR/USD exchange rate for the transaction.
  • Numerical Breakdown:
    • TechCorp submits an RFQ for $500,000 USD into euros.
    • The FX provider responds with a quote of 1.0950 EUR/USD.
    • To convert $500,000 into euros:
      • $500,000 ÷ 1.0950 = 456,621.00 EUR
    • TechCorp would receive 456,621 euros based on the quoted rate.
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