FOREX THEORY
What is a Currency Cross Pair?
Back in the ancient days, if someone
wanted to change currencies, they would first have to convert their currencies
into U.S. dollars, and only then could they convert their dollars into the
currency they desired.
For example, if a person wanted to
change their U.K. sterling into Japanese yen, they would first have to convert
their sterling into U.S. dollars, and then convert these dollars into yen.
With the invention of currency
crosses, individuals can now bypass the process of converting their currencies
into US dollars and simply convert it directly into their desired currency.
Some examples of crosses include: GBP/JPY, EUR/JPY, EUR/CHF, and EUR/GBP.
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