The UK currency is the British pound sterling. This is abbreviated by GBP throughout the financial world, but you may come across another term, GBX. The latter is actually used more frequently with listed companies on the London Stock Exchange, but what exactly is it?
What is GBP?
As aforementioned, GBP stands for the British pound sterling and a single unit equates to £1. It’s one of the most popular currencies in the world for trading and is the most common form of legal tender within the UK.
What is GBX?
GBX stands for the British pence sterling, which represents a single pence and a single unit equates to 1p. There are a hundred pennies in every British pound sterling, which means there are 100 GBX (p) in every GBP (£).
Most UK companies listed on the London Stock Exchange are listed in GBX. For instance, should a company be listed for 1,150 GBX, each share is actually worth £11.50.
How to convert GBP and GBX
It’s easy to work out GBP using GBX and vice versa. Simply use the following formula and you’ll calculate the end result.
- GBX / 100 = GBP
- GBP x 100 = GBX
My dividend portfolio and investment tracker automatically converts GBX to GBP to make glancing at your portfolio a little easier.