Cross Currency

A cross-currency transaction involves buying and selling two or more foreign currencies at the same time through foreign exchange conversions.

In the olden days, you had to first exchange the foreign currencies for U.S. dollars, but now you can trade the currencies directly.

If you're an international wheeler-dealer, perhaps you're buying Australian dollars with yen and simultaneously selling yen for British pounds. This way, you can make the most profit by closely following currency rate movements.