Forex glossary
EUR/GBP
EUR/GBP quotes British pounds per euro. The pair contains no USD leg, with EUR as base and GBP as quote currency. Its rate can respond to economic conditions, monetary policy and expectations concerning the euro area and United Kingdom.
Illustrative example
How does it work in practice?
At a hypothetical EUR/GBP rate of 0.8500 GBP per EUR, 1,000 EUR is worth 850 GBP. At 0.8600 its value increases by 10 GBP, before costs or account-currency conversion.
A case to work through
Two stages of P/L
Model: long 2,000 EUR, entry 0.8500 and exit 0.8520 GBP/EUR; conversion 5 PLN/GBP, no costs.
- P/L is 2,000 × 0.0020 = 4 GBP.
- Conversion gives 4 × 5 = 20 PLN.
What follows? Calculate GBP first, then PLN.
Example boundary: The conversion rate is only an exercise assumption.
A useful distinction
EUR/GBP / GBP/USD (Cable)
GBP/USD quotes USD per GBP; EUR/GBP quotes GBP per EUR.
Check your understanding
Separate price P/L from currency conversion.
Show the answer and explanation
15 PLN
1,000 × 0.0030 × 5 = 15 PLN.
Pair units and result currency
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Related terms
Sources and documentation
- ECB: euro reference exchange rates
Currency units and reference quotations, not executable prices or invented case datasets.
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.