Cross Rate with Ask and Bid something, quotes, cross, Cross

bigredhockey55

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?

iteracom

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.

madaochenggong

but we need the mid not the bid ?

needhelp1700

gmakri sounds right to me ab bid divided by ac ask to get a cb bid

Newhuman

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

luda002

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 !