In the foreign exchange market, the exchange rate is based on the US dollar. The relative exchange rates of two currencies other than the US dollar are crossed, such as the euro against the British pound and the Australian dollar against the Japanese yen.
Advantages of cross trading:
1. You can buy the most powerful currency in the current market by using the locked currency as your local currency through the cross star. Through the band operation of the cross disk, more and more local currency is in hand, achieving the purpose of profit.
2. Cross-market has a large fluctuation space, and any currency can be traded freely. After cross-profit, you can choose to return to the original currency or directly return to the US dollar.
3. Cross-transaction is a direct transaction between two non-US dollar currencies, which does not need to be conducted in US dollars, thus reducing the spread and transaction cost. Everything is two-sided, and the cross board also has inevitable disadvantages.