Cross
Cross is a financial term that refers to the simultaneous purchase and sale of a security, currency, or commodity in two different markets. It is also known as a “cross-trade” or “cross-currency trade.” Cross trades are typically used to take advantage of price discrepancies between two markets, or to hedge against currency fluctuations. Cross trades are often used by large institutional investors, such as hedge funds, to maximize their profits.
History of Cross
Cross trades have been used for centuries, but they have become increasingly popular in recent years due to the rise of electronic trading platforms. In the past, cross trades were typically done manually, with traders having to physically move between two markets to take advantage of price discrepancies. Now, with the advent of electronic trading platforms, cross trades can be done almost instantaneously.
Comparison Table
| Type of Trade | Time Frame | Risk Level |
|---|---|---|
| Cross Trade | Short-term | High |
| Long-term Investment | Long-term | Low |
Summary
Cross is a financial term that refers to the simultaneous purchase and sale of a security, currency, or commodity in two different markets. Cross trades are typically used to take advantage of price discrepancies between two markets, or to hedge against currency fluctuations. Cross trades are often used by large institutional investors, such as hedge funds, to maximize their profits. For more information about cross trades, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Hedge Funds
- Currency Fluctuations
- Price Discrepancies
- Electronic Trading Platforms
- Long-term Investment
- Short-term Investment
- Arbitrage
- Market Maker
- Margin Trading
- Leverage Trading
