Cross rate
A cross rate is the exchange rate between two currencies without the US dollar, such as EUR/GBP or EUR/JPY. You can work it out from two pairs that include the dollar.
How it works
Historically almost every currency was quoted against the dollar. To find how many pounds a euro costs, you took EUR/USD and GBP/USD and divided one by the other. That result is the cross rate. Brokers quote crosses directly today, but the link to the dollar pairs is still there.
The rule is simple. If the dollar sits in the same position in both pairs (EUR/USD and GBP/USD), divide. If it is the quote currency in one pair and the base in the other (EUR/USD and USD/JPY), multiply.
Popular crosses include EUR/GBP, EUR/JPY, GBP/JPY, EUR/CHF and AUD/JPY. They trade less than EUR/USD, so spreads are usually wider, and on exotic crosses they can be much wider.
EUR/USD is 1.10 and GBP/USD is 1.30. The dollar is the quote currency in both, so divide: 1.10 / 1.30 ≈ 0.846. That is EUR/GBP: one euro costs about 0.846 pounds.
EUR/USD = 1.10 and USD/JPY = 150. The dollar is the quote in one pair and the base in the other, so multiply: 1.10 × 150 = 165. So EUR/JPY ≈ 165 yen per euro.
Beginners often open a cross and, at the same time, a trade on one of its parent pairs without noticing it is partly the same bet. Buying EUR/JPY and EUR/USD together doubles your bet on the euro rising. Before you enter, check which two pairs the cross is built from, and compare its spread with the major pairs.
Questions and answers
What is a cross rate in simple terms?
It is the price of one currency in another with no dollar in the pair, for example euros in pounds. You can calculate it from each currency's rate against the dollar.
How do you calculate a cross rate?
If the dollar is the quote currency in both pairs, divide (EUR/GBP = EUR/USD / GBP/USD). If it is the quote in one and the base in the other, multiply (EUR/JPY = EUR/USD × USD/JPY).
Why are spreads wider on cross pairs?
Crosses trade less volume than dollar pairs, so liquidity is thinner. Less liquidity usually means wider spreads, especially overnight and around news.
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Updated: 2026-10-19