What are Direct & Indirect Quotes of exchange rates?

Direct and indirect quotes is a terminology used when
foreign exchange is being bought or sold. If a person wants to buy or sell a currency,
s/he has to pay for it with the currency that s/he owns or accept payment for it in
terms of the currency that the buyer has. The number of units of currency that are
exchanged in the transaction is determined from the prevailing exchange
rate.

Direct quotes refer to
stating the cost of foreign currencies in terms of the
buyer's local currency. For example if a person in the US
wants to buy Pounds, a direct quote would let him/her know how many dollars need to be
given to buy 1 pound: the quote states the buyer's
currency.

Indirect quotes on
the other hand, reverse the two currencies. For example if a person in the UK wants to
buy US dollars s/he is given the number of seller's dollars
that can be bought with 1 pound, instead of how many pounds are needed to buy a dollar:
the quote states the seller's
currency.

Exchange rates are given as
indirect quotes in the UK, Australia, New Zealand and the
Eurozone: the quote states seller's currency. In most other
countries, including the US, exchange rates are given as direct
quotes: the quote states the buyer's
currency.