middle rate
- how to read
- How to read in Japanese: middle rate
- synonyms
- antonym
The standard rate quoted by banks to their customers when dealing in foreign currencies is called the middle rate. The middle rate is also called TTM (Telegraphic Transfer Middle Rate), and is disclosed to customers based on the interbank market level at around 10:00 a.m. on the day the market opens.
The disclosed level is generally the rate that is applied throughout the day without fluctuation. However, the middle rate is only a reference rate, and does not take into account commissions and other fees that are necessary for each bank to earn a profit. Therefore, it differs from the rate at which customers actually trade.
The rate at which a customer buys from a bank is called TTS (Telegraphic Transfer Selling Rate). Conversely, the rate at which a customer sells to a bank is called TTB (Telegraphic Transfer Buying Rate).
These rates take into account bank charges, so basically TTS will be higher than TTM (you will be buying at a higher price than the base price). On the other hand, TTB will be lower than TTM (you will be selling at a lower price than the base price).