FX Cross Rates 2
- 01:27
Learn where to find FX cross rates and what they mean
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Glossary
Cross Rates Currency Monitor FX Monitor FX PairsTranscript
A common way to find FX cross rates and FX rates in general is to look at the currency monitor. An example of a currency monitor is on the screen now. That's the Bloomberg screen showing a a wide variety of rates and cross rates for Bloomberg screen. The base currency is found on the horizontal axis. That might not always be the case. Be very, very careful when you use these screens. A smart way to confirm that you're looking at the screen in the right way is to always know at least one currency pair. So I, for instance, would know that the British pound is worth a lot more than the Swedish krona. When I look at the screen and I find the British pound to the Swedish Krona, I can confirm that the base currency is the on the horizontal axis. Just another quick look. Here at FX cross rates, say I'm looking to trade the pound to Norwegian Krone. First thing I do is find common pairs. The first pair would be the British pound to the US dollar. The second one would be the US dollar to the Norwegian krone. They're common pairs. In order to figure out the British pound to the Norwegian krone exchange rate, all I have to do is take the pound to dollar exchange rate and multiply it by the dollar to Norwegian krone exchange rate.