How to Read Exchange Rates: Spread and Cross Rates
What an exchange rate is, why buy and sell prices differ, how cross rates work and why converters differ from your bank.
An exchange rate tells you how many units of one currency one unit of another is worth. If USD/TRY is 40, one dollar costs 40 lira.
Buy and sell spread
Banks and exchange offices quote two prices: lower when they buy from you and higher when they sell to you. The gap, the spread, is the cost of the trade. Converters usually show the mid-market rate between the two, so a real transaction is a little different.
Cross rates
When you do not know the direct rate you go through a third currency. If EUR/TRY is 43 and USD/TRY is 40, then EUR/USD is 43 ÷ 40 = 1.075. The converter does this behind the scenes.
Travel tips
- Airport exchange desks usually apply wider spreads.
- When paying by card, choose the local currency rather than your home currency; it is often cheaper.
- Rates move during the day; check the price at the moment of the transaction.
Use the Currency Converter for a live conversion. Values are informational, not investment advice.