If someone has 1000 GBP and they want to know what this would be worth in both USD and EUR, we can use the currency price of the platform to calculate the answer.
To determine what 1000 GBP is in USD, we look at the GBPUSD rate which is 1.50614. This tells us that 1 EUR is equal to 1. 50614 USD. So to calculate how much 1000 GBP is in EUR, we simply:
1000 x 1.50614 = 1506.14 USD
To determine what 1000 GBP is in EUR we look at the EURGBP rate, which is 0.8213. This tells us that 1 EUR is equal to 1.50624 USD. So to calculate how much 1000 GBP is in EUR, we simply:
1000 / 0.821333 = 1217.53 EUR
You can see that the calculation is reversed in the second example and we Divide rather than Multiply. This is due to the currency pair we are using to calculate the conversion for.
When converting GBP to EUR pair. GBP is the Term Currency on therefore we Divide by the rate,
Another example, this time we want to know what 1500 USD is worth in GBP and how much USD we can get for 2350 GBP
We need the rate of GBPUSD, which is 1.50612
As USD is the Term Currency, to find out how much 1500 USD is worth in GBP, we must Divide by the rate
1500 / 1.50612 = 995.93 GBP
As GBP is the Base Currency, to find out how much 2350 GBP is worth in USD, we must Multiply by rate
2350 x 1.5062 = 3539.38 USD