You just have to multiply the two bid prices with your cross rate calculator to get the cross rate. For example: In the case of the GBP/CHF. The bid prices are as follows: GBP/USD=1.5700, USD/CHF=0.9300. Thus the cross rate (GBP/CHF) will be 1.5700*0.9300=1.4601.
Financial media provide information only about the most frequently used exchange rates. Therefore, you may not have all the exchange rate information you
A step-by-step guide to calculating cross rates, which are exchange rates for currency pairs that do not involve the US dollar.
The cross rate is the currency exchange rate between currency A and currency C derived from exchange rate between currency A and currency
Example. To calculate the cross-rate between Sterling (GBP) and the Mexican Peso (MXN), using the US Dollar (USD) as the common currency. Let us assume that rates are quoted as follows: GBP / USD = 1.43130 / 1.43160.
To calculate the percentage discrepancy, take the difference between the two exchange rates, and divide it by the market exchange rate: 1.12 - 1.0950 = 0.025/1.0950 = 0.023. Multiply by 100 to get the percentage markup: 0.023 x 100 = 2.23%. A markup will also be present if converting U.S. dollars to Canadian dollars.
A cross rate is the exchange rate between two currencies when neither are official currencies of the country in which the quote is given.
Each currency pair in the cross rate calculation must have a currency in common. The common currency ensures that the comparison between the two exchange
A brief demonstration on computing the cross rate between currencies.