Question: Risk Go Bact When considering currency pair trading, what are the advantages and disadvantages of directly trading between. two non - USD currencies versus using
Risk
Go Bact
When considering currency pair trading, what are the advantages and disadvantages of directly trading between. two nonUSD currencies versus using the US dollar as an intermediary medium for two trade's?
Advantages: Tighter Bidask spreads and greater liquidity
Disadvantages: Additional complexity and potential requirement for multiple conversions
Advantages: Reduced transaction costs and potential slippage Disadvantages: Limited liquidity and potentially wider bidask spreads
Advantages: Efficient execution and better pricing
O Disadvantages: Exposure to multiple exchange rate risks and potential fluctuations in the US dollar exchange rate
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