What is 'Dual Pricing'

Dual pricing is the practice of setting prices at different levels depending on the currency used to make the purchase. Dual pricing may be used to accomplish a variety of goals, such as to gain entry into a foreign market by offering unusually low prices to buyers using the foreign currency, or as a method of price discrimination.

BREAKING DOWN 'Dual Pricing'

Dual pricing can also take place in different markets that use the same currency. This is closer to price discrimination than when dual pricing is implemented in foreign markets and different currencies. Dual pricing is not necessarily an illegal pricing tactic; in fact, it is a legitimate pricing option in some industries. However, dual pricing, if done with the intent of dumping in a foreign market, can be considered illegal.

RELATED TERMS
  1. Dual Currency Swap

    A currency swap used to hedge the risk associated with the issuance ...
  2. Dual Currency Service

    A forex trading service that allows an investor to speculate ...
  3. Dual Currency Bond

    A debt instrument in which the coupon and principal payments ...
  4. Dual Trading

    When a broker simultaneously executes customer orders and places ...
  5. Dual Class Stock

    The issuing of various types of shares by a single company. A ...
  6. Dual Banking System

    The system of banking that exists in the United States in which ...
Related Articles
  1. Taxes

    When Is Dual Citizenship Not A Good Idea?

    There are many ways to become a dual citizen, and doing so offers certain benefits. But there are a few disadvantages, as well.
  2. Taxes

    When is Dual Citizenship Not a Good Idea?

    It may sound useful, but there are a number of reasons that make dual citizenship a questionable choice.
  3. Taxes

    Advantages And Disadvantages Of Dual Citizenship

    A person with dual citizenship is a citizen of two countries at the same time. Dual citizenship is complex, so it’s important to understand the pros and cons.
  4. Managing Wealth

    Is It Smart To Get Dual Citizenship?

    When does it make sense to be a citizen of the U.S. and somewhere else? Here are the plusses and negatives of a dual citizenship.
  5. Trading

    Dual And Multiple Exchange Rates 101

    Why would a country choose to implement dual or multiple exchange rates? It's risky, but it can work.
  6. Investing

    Protect Your Foreign Investments From Currency Risk

    Hedging against currency risk can add a level of safety to your offshore investments.
  7. Small Business

    What is Price Discrimination?

    Price discrimination occurs when a company charges different customers different prices for the same goods or services.
  8. Financial Advisor

    Breaking Down the Federal Reserve's Dual Mandate

    The Fed has been tasked with a dual mandate by Congress to achieve monetary stability. We explain what the dual mandate is and what it means.
  9. Trading

    Exploring Non-Dollar Currencies For Forex Trading

    Learn how investments in foreign currencies can diversify your portfolio.
  10. Insights

    Cautionary Signs For International Investors

    "Going global" is a fashionable investing style, but investors should know the risks.
RELATED FAQS
  1. How do companies use price discrimination?

    Learn about price discrimination, the three different types of price discrimination and how companies use price discrimination ... Read Answer >>
  2. What are the different types of price discrimination and how are they used?

    Understand the difference between the three major types of price discrimination and how each is used in practical business ... Read Answer >>
  3. What is the average debt/equity ratio of companies in the electronics sector?

    Learn about the three types of price discrimination, and understand how each can benefit a company in terms of selling its ... Read Answer >>
  4. What profit margin is average for a company in the electronics sector?

    Understand what types of common industries practice price discrimination. Learn about the three types of price discrimination ... Read Answer >>
  5. How can I invest in a foreign exchange market?

    The foreign exchange market, also called the currency market or forex (FX), is the world's largest financial market, accounting ... Read Answer >>
Hot Definitions
  1. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  2. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  3. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  4. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  6. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
Trading Center