As you’ve discovered, there’s a whole world of trading opportunities beyond just guessing what the U.S. dollar will do each day.
Now that you know where to look, here are some key points to keep in mind:
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Currency crosses give you access to more pairs to trade, meaning more chances to find good setups.
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Crosses often show cleaner trends and ranges compared to the major dollar pairs.
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You can benefit from interest rate differentials by trading crosses.
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Always do your research—try to pair strong currencies against weak ones to increase your odds.
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If your broker doesn’t offer the cross you want, no worries! You can create a synthetic pair by simultaneously trading two major pairs to mimic the cross.
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The most popular euro crosses are EUR/JPY, EUR/GBP, and EUR/CHF.
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GBP/JPY, AUD/JPY, and NZD/JPY are favored for carry trades because they have some of the highest interest rate differences against the yen.
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When trading less common crosses, watch out for wild price swings and wider spreads—they can be riskier.
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Even if you mainly trade majors, crosses can help you decide which pairs to pick by showing which currency is stronger.
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Remember, moves in currency crosses can influence the majors as well.
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One last tip: be aware of the pip value for the cross you’re trading, since it can differ from majors. This is important for managing your risk properly.
So, on days when the majors don’t show clear opportunities—or if you want to avoid the noise from big U.S. news events—check out some currency crosses. You might just discover some hidden gems!
And if you want to chat with other traders who love trading the crosses, be sure to visit our Currency Crosses forum—it’s the perfect spot to share ideas and strategies!