Exchange rate, also known as "foreign exchange market or exchange rate", is the ratio of one currency to another currency. It is the price of one currency to another currency.To determine the price ratio between two different currencies, you must first determine which country's currency is used as the standard.Due to the different criteria, there are several different ways of marking foreign exchange rates.The commonly used pricing methods include direct pricing and indirect pricing.

Direct pricing method: refers to a certain unit of foreign currency as the standard to calculate how many units of domestic currency should be paid.Also known as foreign currency exchange rate.For example, the foreign exchange rate of the US dollar against the RMB is 6.84463 RMB per US dollar.That is to use foreign currency to express local currency.

Indirect pricing method: refers to a certain unit of domestic currency as the standard to calculate the number of units of foreign currency receivable.Also known as the local currency rate.For example, the exchange rate of RMB against US dollar is 1 RMB against 1/6.84463 US dollars.That is, foreign currency is measured in local currency.