Definition Definition

Cross Rate

In calculating a spot or future price between two currencies, reference to their respective quotations in a third currency determines the cross rate. 

Definition 2.

Cross rate is an exchange rate between two currencies derived by dividing each currency’s exchange rate with a third currency.

For example, if ¥/$ is 140 and DM/$ is 1.5000, the cross rate between ¥ and DM is ¥140/$ 4 DM1.5000= ¥93.3333/DM.

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