标题: Cross Rate with Ask and Bid [打印本页] 作者: lxwarr30 时间: 2011-7-19 02:16 标题: Cross Rate with Ask and Bid
When calculating cross rates when given bid-ask quotes, do we take the mid-point of each of the two bid-ask quotes to derive the third? Or do we do something fancy that involves up the bid and down the ask?作者: iteracom 时间: 2011-7-19 02:31
Ab x bc= ac
Ab/ac=cb
If you are given bid ask
Ab bid x bc bid= ac bid and vice versatile
Ab bid/ ac ask= cb bid and vice versa作者: Walex 时间: 2011-7-19 02:46
mfbarbmff Wrote:
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> When calculating cross rates when given bid-ask
> quotes, do we take the mid-point of each of the
> two bid-ask quotes to derive the third? Or do we
> do something fancy that involves up the bid and
> down the ask?
you have do fancy stuff buddy. sorry !作者: chandsingh 时间: 2011-7-19 03:01
gmakri sounds right to me ab bid divided by ac ask to get a cb bid作者: torontoanalyst 时间: 2011-7-19 03:32
amresmadi Wrote:
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> but we need the mid not the bid ?
When you calculate forward rate, you use midpoint for bid-ask .. however when calculating bid and ask, you dont use any midpoints.作者: cv4cfa 时间: 2011-7-19 04:02
I think people overcomplicate this issue with regards to learning formulas and tricks, where all thats required is developing some good intuition. All you really need to do is understand what the Quote is saying.
The quote USD/GBP at 1.6 1.7 is saying that if you need to convert GBP to USD, the broker will give you 1.6 USD, but will charge you 1.7 USD.
