call / put:buy /sell in spot rate ?

[CHITRESH]

hi fiends i am having confusion in deciding which rate is buy rate and which is sell in foreign exch. please help ?
are there some easy steps to solve foreign exchange questions which can help us out in exams .

[sohaib]

As far as your question regarding foreign currency is concerned,in UK indirect quote system is used that is say pound;$=.659,where the direct quote is $;pound=1.518 of the aforementioned.remember that bank always win.if u want to buy a foreign currency bank will sell it and bank will sell LOW bcoz when u divid by the low number the amount u will get be be large and similarly when bank buy foreign currency then you will sell and bank buy high rate.when highr rate is used to divide then the numbr u vil get be small so bank effectively buying at low rate.so bank buy low and sell high.if u r using direct quote procedure will b opposite.