Currency Cross


A currency cross is when you have a pair not containing the USD.
Example: GBP/JPY

They are useful to trade as the provide different price movements than those of the USD.

Calculation of the Prices

To calculate the bid price for GBP/JPY, you simply multiply the bid prices for GBP/USD and USD/JPY.

GBP/USD: 1.5630 (bid) / 1.5635 (ask)
USD/JPY: 89.38 (bid) / 89.43 (ask)
If you got 139.70, good job!

Spikes

Currency crosses are useful because they allow you to avoid spikes. Indeed, USD data can sometimes make spikes happen in prices.

Interest

Relative values of pairs may change when in a trade, meaning you can win or lose more.

Exotic Pairs

Exotic Pairs are pairs where the Volatility is high, so price makes wide movements.

Fundamental Analysis - 20230308053349

Fundamental analysis can be used to trade currency crosses.

META

Status:: #wiki/notes/mature
Plantations:: Forex
References:: Babypips