The mid market rate is the exchange rate that falls exactly halfway between the Buy and Sell exchange rates.
What are buy and sell rates for currency?
These are the exchange rates that currency exchange traders show you when you want to change money. The Buy and Sell rate that you’re quoted includes all the hidden fees and extra charges that the exchange agent tacks on to your transaction.
What is middle rate in currency exchange?
This is the currency exchange rate that lies halfway between the current Buy and Sell rates. It’s in the middle of the two extremes – which is why it’s called the middle rate, or mid market exchange rate.
What is exchange rate margin?
This is the profit margin that currency traders add on to the mid market rate. For example, the mid market rate for USD to Euros is $1 to €0.90. You want to exchange $1000 into Euros. Instead of selling you €900, the trader will give you a rate of €0.85 to the dollar, so you only receive €850.
How does buy sell currency work?
When you exchange money, you’re either buying or selling currency. If you’re an American online retailer transferring USD into GBP, you’re buying foreign currency (GBP) using your US dollars.
That makes you the buyer, and the currency trader is the seller. The trader will give you the Sell rate, which is probably lower than the mid market rate.
If you’re exchanging GBP into USD, you’ll be selling GBP back to the currency trader for USD. The trader is buying your foreign currency, so he’ll tell you the Buy rate, which is usually higher than the mid market rate.