X-Rate (Cross Rate)
A currency pair that doesn't include the US dollar, calculated from two USD pairs.
Quick answer
An X-rate is an exchange rate between two currencies that does not involve the US dollar, such as EUR/GBP or AUD/JPY. Crosses are derived from each currency's rate against the dollar.
Definition
An X-rate (cross rate or simply "cross") is an exchange rate between two currencies that doesn't involve the US dollar. Examples include EUR/GBP, AUD/JPY, and GBP/CHF. Cross rates are derived from each currency's rate against USD.
How It Works
- EUR/GBP derived from EUR/USD and GBP/USD
- EUR/JPY = EUR/USD × USD/JPY
- No direct USD involvement
- Spreads often wider than major pairs
Trading Tips
1
Cross rates can be more volatile
2
Liquidity varies by cross
3
EUR crosses most liquid among crosses
Related Terms
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