Most forex traders focus on the big names-major currency pairs that include the US dollar (USD). And while those pairs are popular for a reason, there’s another way to trade forex that many overlook: cross-currency pairs.

These pairs don’t include the USD, which means they offer different trading opportunities, fresh market dynamics, and a way to diversify your strategy.

Let’s break it all down and see why cross-currency pairs might be worth adding to your trading playbook.
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What are cross-currency pairs?

A cross-currency pair (also called a currency cross) is a forex pair that doesn’t include the US dollar. Instead of being priced against the USD, these pairs let you trade directly between other major currencies, like:

• EUR/GBP (Euro / British pound)
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• EUR/JPY (Euro / Japanese yen)
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• GBP/AUD (British pound / Australian dollar)
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Before cross-currency pairs became widely available, traders had to first convert one currency into USD and then exchange it for another currency. This extra step meant more costs, longer wait times, and potential losses due to exchange rate fluctuations.

Now? Cross-currency pairs remove the middleman (USD), making transactions smoother, faster, and often cheaper.

Here are a few cross-currency pairs you can trade on Deriv:

Why trade cross-currency pairs?

If you’re wondering whether it’s worth exploring these pairs, here are four great reasons to give them a shot:
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Trade without relying on the US Dollar

Most major forex pairs are heavily influenced by what’s happening in the US—economic reports, interest rate decisions, inflation news, and so on. This means that USD movements can affect almost every major pair at once.

With cross-currency pairs, you’re not tied to the ups and downs of the US economy. You can focus on opportunities in other regions and build a more balanced strategy.

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Diversify your portfolio

Relying solely on USD-based trading can be limiting. By adding cross-currency pairs to your portfolio, you can explore price movements influenced by different economies, industries, and commodities markets.

For example, some cross-currency pairs are closely tied to commodity prices. That means changes in oil, gold, or agricultural markets could directly impact certain forex pairs, creating new trading opportunities.
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Use forex hedging

Hedging is a technique traders use to reduce risk by placing a second trade that offsets potential losses from the first. Since cross-currency pairs move independently from USD-based pairs, they can serve as a hedge against USD market volatility.

If the USD market gets unpredictable, having positions in cross-currency pairs could help balance out your overall risk.
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Trade global events more efficiently

Big economic events happen all over the world—not just in the US. Cross-currency pairs let you take advantage of these global movements without needing to go through USD-based trades first.

For example, if you expect price shifts between the euro and British pound, you can trade EUR/GBP directly. This means fewer trades, fewer transaction fees, and a more efficient way to capitalize on market events.
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Start exploring cross-currency trading today

The US dollar might dominate global forex markets, but cross-currency pairs open up a whole new world of trading opportunities-beyond USD-based strategies.

Curious to try? Test cross-currency trading risk-free with a demo account, or dive deeper with free courses on Deriv Academy.

Log in using your Deriv account email and password to get started. Happy trading!

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