oussama94
05-28-2017, 19:29
Cross-currency pairs are generally not traded over either platform, but
instead are calculated based on the rates of the major currency pairs and
then offset using the “legs.” For example, if an interbank trader had a
client who wanted to go long AUD/JPY, the trader would most likely buy
AUD/USD over the Reuters D3000 system and buy USD/JPY over EBS. The
trader would then multiply these rates and provide the client with the respective
AUD/JPY rate. These currency pairs are also known as synthetic
currencies, and this helps to explain why spreads for cross currencies are
generally wider than spreads for the major currency pairs.
instead are calculated based on the rates of the major currency pairs and
then offset using the “legs.” For example, if an interbank trader had a
client who wanted to go long AUD/JPY, the trader would most likely buy
AUD/USD over the Reuters D3000 system and buy USD/JPY over EBS. The
trader would then multiply these rates and provide the client with the respective
AUD/JPY rate. These currency pairs are also known as synthetic
currencies, and this helps to explain why spreads for cross currencies are
generally wider than spreads for the major currency pairs.