Currency crosses are currency pairs that do not include the US dollar. They are often used by traders as an alternative to the major currency pairs, which include the US dollar, and they can provide additional trading opportunities and diversification benefits.
Currency crosses are typically made up of two major currencies, such as the Euro and the Japanese Yen (EUR/JPY), or two emerging market currencies, such as the South African Rand and the Brazilian Real (ZAR/BRL). They can also be made up of three or more currencies, such as the EUR/JPY/GBP currency cross, which includes the Euro, the Japanese Yen, and the British Pound.
Traders can use currency crosses to trade based on the relative strength or weakness of the underlying currencies, and to diversify their exposure to different regions and economies. However, it is important to note that currency crosses are generally less liquid and more volatile than the major currency pairs, and they can be more difficult to trade. As such, traders should carefully consider the risks and potential rewards of trading currency crosses before making any trades.