How it works
Examples can combine two major currencies directly. The cross rate is economically linked to each currency's dollar relationships even when USD is not shown in the pair.
What to check
Compare the direct quote with the implied cross rate from related pairs when studying pricing. Liquidity can be lower than in the most heavily traded dollar pairs.
- Know both underlying currencies
- Understand implied cross rates
- Compare liquidity with major pairs
Limits and risks
Crosses can respond to two sets of domestic drivers at once. Wider spreads and thinner liquidity can make execution different from major dollar pairs.
Primary sources
BIS 2025 Triennial Central Bank Survey↗FCA: Contracts for difference (CFDs)↗General information only. Investment products can lose value, and terms, fees and regulation can change.