Cross Pair
Also known as: Crosses, Minors
A currency pair traded in the foreign exchange market that does not include the US Dollar.
Plain-English Meaning
While the US Dollar dominates global exchange, you don't have to use it to trade. A cross pair lets you trade two non-USD currencies directly against each other, such as swapping Euros directly for British Pounds.
Why It Matters
Cross pairs provide trading opportunities outside of US economic influence. If a trader believes the Eurozone economy will outperform the UK economy, they can trade EUR/GBP directly without having to execute two separate USD trades.
Simple Example
EUR/GBP (Euro vs British Pound) and AUD/JPY (Australian Dollar vs Japanese Yen) are popular cross pairs. Buying EUR/GBP means you expect the Euro to strengthen specifically against the Pound.
This educational example uses selected assumptions for reference calculation purposes. Real conditions may vary by broker, exchange, or instrument.
Beginner Mistake
Ignoring the wider spread. Because cross pairs are traded less frequently than majors, brokers often charge a slightly higher spread to execute the trade, increasing the baseline cost.