Cross rates: Difference between revisions
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For example USD/EUR, USD/JPY. | For example USD/EUR, USD/JPY. | ||
The related cross rates are the foreign exchange rates between the other related | The related cross rates are the foreign exchange rates between the other related pairs of minor currencies, calculated via the USD rates. | ||
For example the EUR/JPY rate, as calculated via the USD from the USD/EUR and USD/JPY quotes. | For example the EUR/JPY rate, as calculated via the USD from the USD/EUR and USD/JPY quotes. | ||
Cross rate bid-offer spreads are normally wider than the bid offer spreads quoted against USD because they incorporate two bid-offer spreads against the USD, not just one. | Cross rate bid-offer spreads are normally wider than the bid offer spreads quoted against USD because they incorporate two bid-offer spreads against the USD, not just one. | ||
== See also == | == See also == | ||
* [[Bid-offer spread]] | * [[Bid-offer spread]] | ||
* [[Foreign exchange rate]] | * [[Foreign exchange rate]] | ||
* [[Forward rate]] | |||
* [[Spot rate]] | |||
* [[Swap rate]] | |||
[[Category: | [[Category:Manage_risks]] | ||
[[Category: | [[Category:Trade_finance]] | ||
Latest revision as of 10:37, 28 July 2017
Foreign exchange.
Most foreign exchange rates are quoted against a widely traded currency, most commonly USD.
For example USD/EUR, USD/JPY.
The related cross rates are the foreign exchange rates between the other related pairs of minor currencies, calculated via the USD rates.
For example the EUR/JPY rate, as calculated via the USD from the USD/EUR and USD/JPY quotes.
Cross rate bid-offer spreads are normally wider than the bid offer spreads quoted against USD because they incorporate two bid-offer spreads against the USD, not just one.
