A cross currency pair is also known as a cross, which in a nutshell is a currency pair that doesn’t include the U.S. dollar.
Cross currency pairs are created to solve the actual exchange problems in the offline foreign exchange market.
In the past, if someone wanted to travel from Europe to Japan, they had to exchange euros for dollars, and then dollars for yen.
You can imagine it’s a pretty messy process.
So the emergence of cross-currency pairs allows currency traders to bypass the tedious process of converting currencies into dollars and thus freely convert their currencies directly into the desired currency.
Which cross currency pairs AUD/CAD, AUD/CHF, AUD/JPY, AUD/NZD, CAD/ CHFCAD, CAD/JPY, CHF/JPY, EUR/AUD
/AUD), EUR/CAD (EUR/CAD), EUR/ Swiss Franc (CHF/EUR), EUR/GBP (EUR/GBP), EUR/JPY (EUR/JPY), EUR/NZD (EUR/NZD), British Pound/Australian Dollar (GBP/AUD), British Pound/Canadian Dollar (GBP/CAD), British Pound/Swiss Franc (GBP
/CHF), Sterling /JPY (GBP/JPY), Sterling /NZD (GBP/NZD), NZD/CAD (NZD/CAD), NZD/CHF (NZD/CHF), NZD/ JPY (NZDJPY).
Here are 21 cross-currency pairs.
How to Trade Cross-currency pairs Take the Doo Prime currency pair platform, which offers the 21 cross-currency pairs listed above, as well as over 60 premium currency pairs.
What is the value of the cross-currency pair trading? The currency that can be caught through the cross is used as the local currency to buy the strongest currency in the current market.
In this way, through the band operation of the cross, the hands of more and more local currency, natural position cost will be further reduced, and finally achieve unwinding and even profit.
The fluctuation space of the cross market is relatively large, any currency can be freely traded between, as long as a good grasp, a lot of profit opportunities.
After the cross-currency pair is profitable, you can choose to return to the original local currency or directly back to the US dollar, which is very flexible.
The operation of a cross is a direct buy or sell between two non-dollar currencies, without the need for dollars, which reduces the spread and reduces the cost of trading.
For example, we want to know the buy/sell price of sterling/yen.
First, what we need to do is find the bid prices for GBP/USD and USD/JPY.
Why these two currency pairs?
Because sterling/dollar and dollar/yen both contain dollars.
Now, let’s look at the buy/sell rates for the above two currency pairs: GBP/USD: 1.38769(offer)/1.38785(bid) USD/JPY:
108.270(offer)/108.284(bid) To find the bid price for GBP/JPY, you simply multiply the bid price for GBP/USD and the bid price for USD/JPY.
If you get 150.2819, your calculation is exactly right.
Similarly, if you want to calculate the selling price of GBP/JPY, you need to multiply the selling price of GBP/USD and the selling price of USD/JPY.
There are many cross-currency pairs. Only 21 cross-currency pairs are listed in this paper. For details, you can also check the formal currency pair trading platform.
Notably, DooPrime offers mock accounts, where investors can open an account to inquire about their currency pair products or simulate trading.
The emergence of cross-currency pairs allows currency traders to bypass the cumbersome process of converting their currencies into dollars and achieve the freedom of currency exchange, reducing the resulting time and expense costs.
