Currency & Forex
Intermediate

Cross Rate

Derive the exchange rate between two currencies via a common third currency.

Formula

RateA/C=RateA/B×RateB/CRate_{A/C} = Rate_{A/B} \times Rate_{B/C}

Variables

Rate_{A/C}Cross rate
Rate_{A/B}A per B
Rate_{B/C}B per C

Example

EUR/GBP = EUR/USD ÷ GBP/USD

Did You Know?

Before the euro, most European cross rates were computed through the US dollar as the pivot currency.

cross rateforexarbitrage