Cross Pairs
Cross pairs are a type of currency trading that involves the simultaneous purchase and sale of two different currencies. This type of trading is also known as a currency pair. Cross pairs are different from the more common major currency pairs, which involve the purchase and sale of two currencies from the same country. For example, the EUR/USD pair is a major currency pair, while the EUR/GBP pair is a cross pair.
Cross pairs are popular among traders because they offer more opportunities for profit. Since the two currencies in a cross pair are not from the same country, they are not as closely correlated as major currency pairs. This means that traders can take advantage of price discrepancies between the two currencies to make a profit.
The history of cross pairs dates back to the early days of currency trading. In the past, traders would buy and sell currencies from different countries in order to take advantage of price discrepancies. This type of trading was known as “crossing” and was popular among traders who wanted to make a profit from the difference in exchange rates between two countries.
Comparison Table
| Type of Currency Pair | Description |
|---|---|
| Major Currency Pair | Involves the purchase and sale of two currencies from the same country. |
| Cross Pair | Involves the simultaneous purchase and sale of two different currencies. |
Summary
Cross pairs are a type of currency trading that involves the simultaneous purchase and sale of two different currencies. This type of trading is popular among traders because it offers more opportunities for profit. The history of cross pairs dates back to the early days of currency trading, when traders would buy and sell currencies from different countries in order to take advantage of price discrepancies. For more information about cross pairs, traders can visit websites such as Investopedia, Forex.com, and FXCM.
See Also
- Major Currency Pairs
- Currency Trading
- Forex Trading
- Exchange Rates
- Currency Correlations
- Currency Pairs
- Currency Hedging
- Currency Arbitrage
- Currency Swaps
- Currency Futures
