Cross rate is when two currencies are equal which follows from their Forex currency exchange rate according to a Forex rate of the third currency. Pairs of non-US dollar currencies are called “crosses.” For a trader, it is important to know the cross rate calculations for him to have a versatile trading. Cross rate is done by involving 3 currencies to create a a new currency pair and eliminate their common currency. It is basically done by using simple rules of arithmetic called cancellation.

The video clearly explained what a cross rate is all about. It provides basic example to fully understand the nature of cross trades and how to deal with it. It is designed primarily for beginners for them to be equipped on the basic principles of Forex trading.