Direct quotes mean getting a fixed amount of the foreign currency in exchange for a variable amount of the domestic currency. A direct currency quote asks how many units of the domestic currency are required to purchase one unit of the foreign currency, which is most commonly the US dollar (USD) in forex markets. An indirect quote, on the other hand, is one in which the price of a domestic currency is expressed in terms of a foreign currency, or one in which the amount of domestic currency received when one unit of the foreign currency is sold is expressed in terms of a foreign currency. It is important to note that a cross currency quote is one that involves two different foreign currencies (or one that does not involve the US dollar). Direct quotes are currency pair quotes in which the foreign currency is expressed in terms of the domestic currency expressed in terms of the foreign currency per unit of the domestic currency.currency.currency. A direct quote tells you how much local currency you will need to buy one unit of foreign currency. When a single currency is being traded, such as the U.S. dollar, a base currency is typically used because it is the most widely traded currency in the world. Two major exceptions to this rule are the British pound and the euro, both of which are highly volatile. Indirect quotes are used when the location of the trader who is asking for a quote determines whether direct quotes should be used. Foreign exchange rates are usually quoted in straight-forward terms in non-business publications and other media outlets so that consumers can understand them. On the other hand, the foreign exchange market has quoting conventions that can be applied across national borders. Direct quotes can be compared to indirect quotes as their inverses, or they can be expressed as the following formula: DQ = 1/IQ. DQ stands for Direct Quote, IQ for Indirect Quote. When the exchange rate increases, the domestic currency depreciates or weakens because the foreign currency price is effectively increasing-and vice versa.

A direct quote is a statement that is reproduced exactly as it was originally said. It's important to make sure this kind of quotation is accurate and not unintentionally altered in some way by the writer or editor. While direct quotes can be used as evidence of what someone said, they should never be taken as the only source of information about an event.