If you have 3.14 BTC to spend, and someone else has 10 EUR, and you agree to trade, then the exchange rate is calculated by:
3.14 / 10 = 0.314 BTC per EUR, or you can flip it and say 10 / 3.14 = 3.1847 EUR per BTC.
Topic: How is exchange rate calculated? (Read 593 times)
It's not calculated. It's an exchange where some people make bids (offer to buy) and some people make asks (offer to sell) and when the exchange finds a match, it's a deal and that's the price at that moment.
Well, the subject says it all: can somebody explain to me, exactly how the exchange rate of BTC to EUR, say, is calculated?
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