Cross rates
The exchange rate between two currencies expressed as the ratio of two foreign exchange rates that are both expressed in terms of a third currency. |
Similar financial terms
Cross defaultDefault on a loan agreement, which results in the default of the entire loan portfolio.
Golden cross
In technical analysis, what happens when the short moving average price of a stock (say, its 20-day moving average) cuts above a longer moving average (say, its 50-day average).
For chartists, this cross is a sign that the market mood has turned decidedly in favour of the stock, especially if up to that point two moving averages have been moving roughly in parallel.
Dead cross
In technical analysis, what happens when the short moving average price of a stock (say, its 20-day moving average) falls below a longer moving average (say, its 50-day average).
For chartists, this cross is a sign that sentiment in the market has turned against the stock, especially if up to that point two moving averages have been moving roughly in parallel.
Cross hedging
The practice of hedging with a futures contract that is different from the underlying being hedged.
Cross holdings
One corporation holds shares in another firm.
Cross-border risk
Refers to the volatility of returns on international investments caused by events associated with a particular country as opposed to events associated solely with a particular economic or financial agent.
Cross-sectional approach
A statistical methodology applied to a set of firms at a particular point in time.
Crossover rate
The return at which two alternative projects have the same net present value.
X or Cross Trade
A transaction that is not exposed to the public by outcry or usual trading practices. This type of trade is permissible provided it is done in accordance with the rules and regulations of the particular exchange and other regulatory organizations. The letter X can indicate this type of transaction on a ticker tape. It may be also used on a ticket or blotter.
Term structure of interest rates
The relationship between interest rates and their maturities.
Spot exchange rates
Exchange rate on currency for immediate delivery.
Real exchange rates
Exchange rates that have been adjusted for the inflation differential between two countries.
Multiple rates of return
More than one rate of return from the same project that make the net present value of the project equal to zero. This situation arises when the IRR method is used for a project in which negative cash flows follow positive cash flows. For each sign change in the cash flows, there is a rate of return.
Fixed exchange rates
A fixed exchange rate system is one where the value of the currency against other currencies remains exactly the same. A fixed exchange rate doesn't stay fixed on its own. Governments have to hold large stocks of foreign exchange, so that they can actively intervene to hold the value of the currency stable. Monetary and fiscal policies will also have to be directed to keeping the rate constant.
