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Cross currency pair

A cross pair combines two major currencies without the US dollar, such as EUR/GBP, EUR/JPY or GBP/JPY.

They are also called “crosses”. Historically, swapping euros for yen meant going through the dollar; cross pairs let you do it directly. Their price is still tied to EUR/USD and USD/JPY.

They are a little less liquid than the majors, so spreads are often wider. Some, such as GBP/JPY, are known for big swings, which calls for wider stops and smaller position sizes.

For regulators such as ESMA, the FCA and ASIC, a cross is not a major pair: maximum leverage for retail clients is 20:1. Check the pip value too, since it is expressed in the quote currency, not in dollars.

The full lessonCurrency pairs: how to read a quote, the bid, the ask and the spreadBase currency, quote currency, bid and ask prices, spread: learn to read a forex quote such as EUR/USD 1.0850 and to tell major, minor and exotic pairs apart.← Full glossary