Cross Currency
Definition of 'Cross Currency'A pair of currencies traded in forex that does not include the U.S. dollar. One foreign currency is traded for another without having to first exchange the currencies into American dollars. |
|
Investopedia explains 'Cross Currency'Historically, an individual who wished to exchange a sum of money into a different currency would be required to first convert that money into U.S dollars, and then convert it into the desired currency; cross currencies help individuals and traders bypass this step. The GBP/JPY cross, for example, was invented to help individuals in England and Japan who wanted to convert their money directly without having to first convert it into U.S dollars. |
Related Definitions
Articles Of Interest
-
The Forex Three-Session System
Market hours for Tokyo, London and New York determine volatility peaks. Find out why. -
Market Makers Vs. Electronic Communications Networks
Learn the pros and cons of trading forex through these two types of brokers. -
Profiting From Carry Trade Candidates
Capitalize on the yield of the interest rate differential by using flags and pennants. -
How can I trade in cross currency pairs if my forex account is denominated in U.S. dollars?
The forex market allows individuals to trade on nearly all of the currencies in the world. However, most of the trading is done on a group of currencies called the "majors", which include the ... -
Top 7 Questions About Currency Trading Answered
Whether you're puzzled by pips or curious about carry trades, your queries are answered here. -
The Foreign Exchange Interbank Market
Can your forex broker offer you the most competitive pricing? Learn how the market's biggest players affect you. -
Forex: Identifying Trending And Range-Bound Currencies
Gain a trading edge by learning how macroeconomic forces play out differently for various pairs in the forex market. -
Make The Currency Cross Your Boss
Tap into a world of possibilities by going beyond the simple pro- or anti-dollar trade. -
A Primer On The Forex Market
Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers. -
Forex: How To Scalp Fundamentally
Learn why event-driven scalping in the currency market involves balancing fundamentals with technicals.
Free Annual Reports