The basic principle of cross exchange rate: to understand the cross exchange rate, we must first clearly understand the basic principle of currency exchange . For example, the cross exchange rate of EUR / JPY is first converted from EUR to USD, and then from USD to JPY to know the cross exchange rate of EUR/JPY. Therefore, the transaction cost of the cross exchange rate is usually higher than that of direct exchange. Moreover, in the fluctuation of the cross exchange rate, there is often a large difference in the quotations of various traders in an instant. The main reason is the secondary exchange of the cross exchange rate, which is different from the direct exchange rate.
Many people like to trade cross-exchange rates, mainly because the fluctuations of cross-exchange rates are relatively lively. In fact, I personally do not agree with frequent cross-exchange rates, especially those new to the market, because the hidden risks of cross-exchange rates are very high; Therefore, you will feel that the fluctuation of the cross exchange rate is more lively, that is because most of the transactions are in the cross currency series dominated by the Japanese yen, because the value of the currency pair becomes larger, so in the fluctuation of the same percentage, there will be more fluctuations in points; the cross exchange rate There are many reasons for the fluctuation of the exchange rate, but we are not easy to obtain a lot of information, which also makes the transaction difficult. If we judge from the technical side, the drawing of the cross exchange rate is often not standard enough, and the defense is much more difficult than the direct exchange; Therefore, friends who like to trade cross-exchange rates must think twice before entering the trading market. The purpose of entering the trading market is to make profits, not to find excitement. Do not trade cross-exchange rates as if they were direct exchange.