Foreign currencies are always traded in pairs – the value of one currency compared to a counterpart. Cross currency pairs, also known as minor currency pairs, are pairs that do not include the U.S. dollar, but do include at least one of the world’s other three major currencies. That is to say that the Japanese yen, British pound or the euro are at least one, if not both of the currencies included in the pair. Cross currency pairs are not to be confused with the seven major currency pairs, all of which include the U. S. dollar against one of the six other most liquid currencies in the world.
Depending on how volatile and liquid a market a trader wishes to invest, he might find that the cross currency pairs are a safer investment than a major pair. As is the case with all other currency pairs, the rates can be influenced by several factors, including economic announcements, geopolitical events, and even global weather. The Fortrade website offers several cross pairs from which traders can choose.