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Chapter 22, Part I. Cross Pair – What the Beast is That?

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Jan 7, 2012.

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  1. Administrator

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    Part I. Part I. Cross Pair – What the Beast is That? [​IMG]

    Commander in Pips: I hope you remember what a currency cross pair is, right?

    Pipruit: Well, if I did not miss something, this is a pair that does not have USD.​

    Commander in Pips: That’s right. When the Forex market was young, there was no possibility to change one currency to another directly. Participants of the market first had had to change their currency into USD, and only then could change USD to another currency that they would like to have. For instance some British Lord wanted to get Japanese yen. First he had to change his pounds for US dollars, and then change the US dollars for Japanese yen. Fortunately, this time in well in the past already and now with the outstanding development of wire communications and the Forex market itself, we can change almost any currency into any other currency that we want directly. And we can do this with cross pairs, such as AUD/JPY, EUR/JPY, GBP/CHF etc.

    [​IMG]
     
    #1 Administrator, Jan 7, 2012
    Lasted edited by : Jan 13, 2012
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