🌍 Cross Exchange Rate Calculator
Triangulate exchange rates between two currencies using a shared base currency.
How to Use This Calculator
Confirm Matching Base Currencies
Enter two currency pairs that share the same base (e.g., USD/EUR and USD/GBP).
Input Current Market Rates
Use spot or forward rates from your trading platform, rounded to at least four decimals.
Run the Calculation
Click calculate to triangulate the cross exchange rate and its inverse automatically.
Apply in Trading or Pricing
Use the computed rate for pricing currency conversions, hedging, or cross-border invoicing.
Formula
Cross Rate (A/B) = Rate (Base/A) Ă· Rate (Base/B)
Example: USD/EUR = 0.92, USD/GBP = 0.78 ⇒ EUR/GBP = 0.92 ÷ 0.78 = 1.1795
Inverse Cross Rate: GBP/EUR = 1 Ă· 1.1795 = 0.8483
This is known as currency triangulation, commonly used when direct quotes are unavailable.
The formula assumes both input pairs are quoted with the same base currency. If you only have inverse quotes (e.g., EUR/USD), invert them before entering. Always verify pip precision for accurate execution.
Full Description
A cross exchange rate expresses the value of one foreign currency relative to another without involving your domestic currency. Traders calculate cross rates to quote prices for currencies that are not frequently traded together or to evaluate arbitrage opportunities across global markets.
By triangulating through a common base currency—often the U.S. dollar—you can derive accurate pricing for less liquid currency pairs. This is standard practice in foreign exchange dealing rooms and treasury departments managing cross-border cash flows.
Practical Applications
- Pricing travel expenses, invoices, and supplier contracts in multiple currencies
- Analyzing FX hedges when direct forward contracts are unavailable
- Identifying triangular arbitrage opportunities in FX markets
- Supporting corporate treasury and import/export cost planning
The calculator also produces the inverse cross rate automatically so you can quote either side of the currency pair instantly.
Frequently Asked Questions
What if my quotes are the other way around?
If you have EUR/USD instead of USD/EUR, simply invert it (1 Ă· EUR/USD) before entering the value to ensure both inputs share the same base currency.
Can I use forward rates instead of spot?
Yes. Triangulation works with spot, forward, or swap points as long as both rates refer to the same value date and base currency.
How precise should the rates be?
Professional FX desks typically calculate cross rates to at least four decimal places (one pip). More precise pricing may be required for currencies with smaller pip values, such as JPY pairs.
What about transaction costs?
This calculator provides theoretical rates. Include bid/ask spreads and commission charges when executing trades to estimate the all-in cost.