The Cross Currency Pair means, one currency is traded against another. The most common exchange rate used to calculate the amount of one currency in another is called the cross rate. To calculate the cross rate, you will need to know the exchange rates between the two currencies.One of the most common example is EUR/USD, which is the cross currency pair for Euro and US dollar. If a trader or investor see that the price of EUR/USD is going down, he will think that the USD will rise against Euro. Therefore, he will buy USD, so that when the price of EUR/USD goes up again, he will make profit from the difference in price between EUR/USD and USD.Cross currency pair trading is also called cross rate trading. Cross currency pairs are pairs where one currency is traded against another, e.g. EUR/USD, EUR/JPY, GBP/CHF. There are also pairs where several currencies are traded against each other, e.g. EUR/GBP/JPY and EUR/USD/CHF. In this case, the first currency is called the base currency and the other ones are called counter currencies.