225632 Resource 119235 120646 120646 1233840259937 1233840330491 Controlled Forex Trading Basics: Cross Currencies

Trading without the U.S. dollar

<br /><font size="2"><span style="font-family: verdana,arial,helvetica,sans-serif;">When reading <span style="font-weight: bold;">forex news</span> and quotes, it is possible that you might, at some point, come across the term &quot;crosses.&quot; This term, crosses, refers to <span style="font-weight: bold;">cross currencies</span>. Cross currencies are simply currency pairs that do not include the U.S. dollar. (Learn more about <a title="currency pair trading, currency pair, cross currencies, forex market, forex, FX trading, make money forex, U.S. dollar" target="_blank" href="item/224630">how currency pair trading works by clicking here</a>.)</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-weight: bold; font-family: verdana,arial,helvetica,sans-serif;">History of cross currencies</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">In the beginning, the <span style="font-weight: bold;">foreign exchange (forex) market</span> required that all currency trades include the U.S. dollar. If you wanted to convert sterling to yen, you first had to convert sterling to dollar, and then convert the dollar to yen. As you might imagine, this process was somewhat inefficient.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">However, as <span style="font-weight: bold;">currency trading</span> became more common, and as the global economy became more...global, the forex market became more user friendly. Cross currencies were introduced. Now it is possible to directly exchange sterling for yen -- and make other direct exchanges.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">This development, along with the advent of electronic trading, made the forex market more accessible to more people. Additionally, <span style="font-weight: bold;">cross currencies</span> provide a way to make money in FX trading without having to use the U.S. dollar if one doesn't want to. (Of course, the risks of forex trading also mean that it is also possible to lose money without having to use the U.S. dollar.)</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">It is worth noting, though, that cross currencies can still be influenced by <span style="font-weight: bold;">movements in the U.S. dollar</span>, even if cross currency pairs do not include the greenback.</span></font><br /><br /> 9 application/xml false cross currencies currency pair currency pair trading forex forex market FX trading make money forex U.S. dollar Currency trading on the forex market http://www.gftforex.com/land/index.asp?aid=446 <script type="text/javascript" src="http://tools.tipd.com/evbs.js"></script> <script type="text/javascript"> evb_url ='http://forex.gftforex.com/public/item/225632'; evb_big(evb_url); </script> <!--SocioFluid--><script type="text/javascript" src="http://www.sociofluid.com/sf.php?widget=124320-000103040b0d0e1011"></script><noscript><a href="http://www.sociofluid.com/">SocioFluid</a></noscript><!--SocioFluid--> Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.6) Gecko/2009011912 Firefox/3.0.6 127.0.0.1 127.0.0.1 mmarquit 66.182.66.2 false true false false true 119235 blog blogsite/GFTForex/web