Cross-Currency Pairs

Cross-currency pairs are currency pairs traded in the foreign exchange market that do not involve the US dollar. Instead, they involve two different foreign currencies, such as the euro and the yen. These pairs are used when traders want to exchange one foreign currency for another directly, bypassing the US dollar. The exchange rate reflects how much of the second currency you can get with one unit of the first currency. Cross-currency trading provides more options for traders to manage international transactions and investment exposure without relying solely on USD-based pairs.