Cross rates: how EUR/GBP is built from two dollar pairs
Most currencies are quoted against the dollar. A cross such as EUR/GBP is either traded directly or derived from two USD pairs, and the derivation is simple division.
Category
Forex
How the currency market actually works: quotes, sessions, margin, swaps and data.
Forward points: where the forward price comes from
A forward exchange rate is not a forecast. It is spot adjusted for the interest rates of the two currencies, so the higher-rate currency trades at a forward discount.
Spot forex has no real volume: what platforms show instead
The volume bars on a forex chart are tick counts from one broker's feed. Real volume exists for currency futures, and using it takes a few conversions.
