What is a conversion factor

What is a conversion factor

1 kilometer (km) = 1000 meters (m) 1 meter (m) = 100 centimeters (cm)A conversion factor is a number used to change one set of units to another, by multiplying or dividing.A conversion factor is the number or formula you need to convert a measurement in one set of units to the same measurement in another set of units.A conversion factor is a factor that is used to change between units, and therefore gives the relationship between two units.The conversion factor is a key element in hedge calculations and, more generally, in the analysis of all market operations including bonds and futures.

Since conversion factors are always used in a context where two different units come into play, conversion factors include threeA conversion factor is a ratio of units that is equal to 1.When a conversion is necessary, the appropriate conversion factor to an equal value must be used.This is a simple fraction or ratio between two different units of the same measurement:

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