What Is a Currency Cross Pair? (Forex Education)

A currency cross pair, also called a cross-currency pair, is a forex pair that does not include the US dollar. Instead, it directly compares the value of two other currencies.

Why Cross Pairs Exist

In the past, traders often had to convert currencies through the US dollar first. For example, if someone wanted to exchange British pounds for Japanese yen, they would first convert pounds into US dollars and then convert those dollars into yen.

Today, cross pairs allow traders to skip that extra step and trade two currencies directly against each other.

Examples of Currency Cross Pairs

Some common cross pairs include:

• EUR/GBP

• GBP/JPY

• EUR/JPY

• EUR/CHF

These pairs are called crosses because neither currency in the pair is the US dollar.

Why Traders Use Cross Pairs

Cross pairs are popular because they allow traders to:

• Trade directly between two non-USD currencies

• Focus on specific economic relationships between countries

• Find additional opportunities beyond major USD pairs

Although cross pairs are usually less traded than major pairs, they are still liquid and widely used in the forex market.

Simple Example

If a trader wants to trade the euro against the British pound, they can trade EUR/GBP directly instead of trading both currencies through the US dollar first.

In short, a currency cross pair is any forex pair that does not include the US dollar and allows two currencies to be traded directly against each other.