Cross rates
alladir:
Hi all, I'm trying to calculate a cross currency price from two majors. I get close but not exactly.
The broker is variable spread.
E.G.
EURUSD bid:1.35000 ask:1.35002
GBPUSD bid:1.59290 ask:1.59297
EURGBP bid:0.84747 ask:0.84756
dividing the bids I get: 1.35000 / 1.59290 = 0.84751
dividing the asks I get: 1.35002 / 1.59297 = 0.84749
Is there a more subtle approach I should take to get closer answers?
To sell EURGBP (bid), you have to sell EURUSD, and then to buy GPBUSD. So have to divide bid by ask:
EURGBP calculated bid : 1.35000 (bid) / 1.59297 (ask) = 0.84747
and reciprocally calculated ask : 1.35002 (ask) / 1.59290 (bid) = 0.84752
excellent, thanks ^_^
Hi all, I'm trying to calculate a cross currency price from two majors. I get close but not exactly.
The broker is variable spread.
E.G.
EURUSD bid:1.35000 ask:1.35002
GBPUSD bid:1.59290 ask:1.59297
EURGBP bid:0.84747 ask:0.84756
dividing the bids I get: 1.35000 / 1.59290 = 0.84751
dividing the asks I get: 1.35002 / 1.59297 = 0.84749
Is there a more subtle approach I should take to get closer answers?