Certain major currency crosses do not fit in the list, so they become other crosses. What is forex here is going to explain this concept to you. Learn what crosses are and why you might care to trade them. Also find out why there are four crosses that fit into an “other” category instead of being listed with USD, Yen, Euro, and Sterling crosses.
What is Forex: Cross Definition
Other crosses are still major currency pairs. These crosses do not involve the USD. You have major USD currency pairs and then major crosses. Major crosses also include Euro, Yen, and Sterling pairings. It leaves four crosses that do not appear in the USD, Yen, Euro, and GBP crosses. As you explore what is forex along different avenues keep in mind that these other crosses might be worthy of trading. These crosses are as follows:
Note that three of these crosses could have been considered Australian crosses, but with so few it was just put into an “other” category. The Australian dollar is often more valuable than the other three currencies, or at least it was historically.
The AUD/CHF might be the safe haven you have chosen when the market turns nasty. The Swiss Franc has a large gold reserve that makes it feel safe. Currency traders tend to hop out of the AUD and into the CHF when the market starts turning for the worse such as no profits on other pairs.
The AUD/NZD pair can seem rather predictable since Australia tends to have better economic stability. However, you should not depend on this and should always study the charts as you learn what is forex.
The AUD/CAD tend to battle for who is more worthy. At times the CAD loses against the AUD making it higher than 1.000, but in the past it has also been worth more than the AUD by being below 1.000. Remember the 1.000 is the base rate in a currency pair, so any quote is always equal to the base’s 1.00.
The CAD/CHF likes to play this game of who can be more valuable too. If you look at the last five years there is a lot of consolidation right around the 1.00 mark.
What is Forex: Other Crosses worth Trading
Rather than explain other currency crosses and what they might be, just note there are some pairs you may want to trade. What is forex is all about the profit you can find by trading money. Certain minor crosses can be extremely volatile, but give way to giant profits.
Still, there are other currencies on the public market that you want to run from. Perception can be a part of your decision. Another way to decide what to trade is based on the market sentiment. Other crosses might be doing quite well because the world is growing without threat of recessions and trouble. More often recession, wars, natural events, and other turmoil is happening thus investor confidence in certain crosses is lower.