What is a cross currency?
Cross currency pairs are all currency pairs that do not involve the US dollar. This currency pair may have unstable price fluctuations, because traders actually use dollars twice. For example, trading more euros/pounds (buying) is equivalent to buying euro/dollar currency pairs and selling pound/dollar currency pairs. Cross-currency pair transactions usually have higher transaction costs. The three most commonly traded cross currencies are euro/yen, pound/euro and pound/yen.