Conversion Rate

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Dictionary Says

Definition of 'Conversion Rate'

The ratio at which one currency can be exchanged for another. For example, a conversion rate for euros to dollars of 1.25 means that one euro can convert to 1.25 dollars. A high conversion rate between currencies means that one currency can "buy" more units of the other. If one euro can be converted into more than one U.S. dollar then the dollar has a lower value relative to the euro.

Also commonly referred to as the exchange rate.
Investopedia Says

Investopedia explains 'Conversion Rate'

The conversion rate depends on several factors, one of which is the interest rate set by the currency's issuing central bank compared to the interest rate set by the bank of the currency being converted into. Countries with high real interest rates typically attract investors from other countries and thus have an increased demand and higher value for their currency.

Search results for

'Conversion Rate'

  • Currency Exchange: Floating Rate Vs. Fixed Rate

    http://www.investopedia.com/articles/03/020603.asp
    Currency Exchange: Floating Rate Vs. Fixed Rate. ... What Is an Exchange Rate? An exchange
    rate is the rate at which one currency can be exchanged for another. ...

  • Conversion Arbitrage: Introduction | Investopedia

    http://www.investopedia.com/university/conversion-arbitrage/default.asp
    ... If prices are efficient, there is no way to extract a profit from conversion
    arbitrage above the risk free rate of interest. You ...

  • CFA Level 1 Study Guide - Liabilities - Reporting The Retirement ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/bond-retirement-conversion-reporting.asp
    ... Temporary Items; 9.6 Adjustments To Financial Statements From Tax Rate Changes;
    9.7 ... Interest Cost Components; 9.10 Reporting The Retirement Or Conversion of Bonds ...

  • Travel Smart By Planning How You'll Pay

    http://www.investopedia.com/articles/pf/08/travel-with-currency.asp
    ... While this is convenient, keep in mind that the merchant may be using a conversion
    rate that is in his or her favor, so you may be losing out compared to ...

  • CFA Level 1 Study Guide - Financial Ratios - Calculating Basic and ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-ratios/basic-diluted-eps.asp
    ... Temporary Items; 9.6 Adjustments To Financial Statements From Tax Rate Changes;
    9.7 ... Interest Cost Components; 9.10 Reporting The Retirement Or Conversion of Bonds ...

  • The Simple Tax Math Of Roth Conversions

    http://www.investopedia.com/articles/retirement/08/roth-conversion-2010.asp
    ... If this rate increases in the future compared to today, a Roth conversion prevails.
    If this rate decreases in the future, a Traditional IRA prevails. ...

  • Eaton – Well-Balanced, But Forever A Bridesmaid?

    http://stocks.investopedia.com/stock-analysis/2011/Eaton--Well-Balanced-But-Forever-A-Bridesmaid-ETN-CMI-CAT-PH-HON-EMR-SI1027.aspx
    ... granting that Eaton (NYSE:ETN) has never had the greatest return on invested capital
    of industrial conglomerates, nor the highest conversion rate of revenue ...

  • Conversion Arbitrage: Introduction | Investopedia

    http://www.investopedia.com/university/conversion-arbitrage/
    ... If prices are efficient, there is no way to extract a profit from conversion
    arbitrage above the risk free rate of interest. You ...

  • 5 Failed Currencies And Why They Crashed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/5-failed-currencies-why-they-crashed
    ... Only six years after its creation, the Inti was replaced by a new version of the
    Sol with a conversion rate of one billion to one. 5. Escudo (Chile). ...

  • 5 Failed Currencies And Why They Crashed - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1210/5-Failed-Currencies-And-Why-They-Crashed-.aspx
    ... Only six years after its creation, the Inti was replaced by a new version
    of the Sol with a conversion rate of one billion to one. ...

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