Question: cation.com / courses / 3 8 5 / modules / 1 1 2 9 / watch When considering currency pair trading, what are the advantages

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When considering currency pair trading, what are the advantages and disadvantages of directly trading between two non-USD currencies versus using the US dollar as an intermediary medium for two trades?
Advantages: Reduced transaction costs and potential slippage Disadvantages: Limited liquidity and potentially wider bid-ask spreads
Advantages: Tighter Bid-ask spreads and greater liquidity
Disadvantages: Additional complexity and potential requirement for multiple conversions
Advantages: Efficient execution and better pricing
Disadvantgs: Exposure to multiple exchange rate risks and potential
fluctuations in the US dollar exchange rate *
cation.com / courses / 3 8 5 / modules / 1 1 2 9

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