Cross Rate Triangular Computation Tool
Reconcile caller explicitly oriented currency quote legs with observed direct cross, exposing signed triangular discrepancy; currencies/market simultaneity, bid-ask spreads and executable arbitrage are not inferred.
Description
A triangular cross quote multiplies two legs with the same bridge orientation.
A triangular cross quote multiplies two legs with the same bridge orientation. An observed direct quote exposes a signed discrepancy.1
The returned values include Derived cross base currency, Derived cross quote currency, Derived cross quote units per base, Signed direct minus derived quote, Signed direct relative gap percent. The How section below explains the calculation, input rules and interpretation.
When to use Cross Rate Triangular Computation Tool
Use Cross Rate Triangular Computation Tool when you need to evaluate the supplied records under the calculation and evidence rules below. No quote inversion, market simultaneity, bid-ask spread or executable arbitrage is inferred.
Prepare observed financial records and verified caller terms. Use one currency for integer minor-unit money and preserve leading zeros in identifier text. One basis point is 0.01 percentage points. Resolve dates, local clocks, counting rules and evidence flags as specified.
How to use Cross Rate Triangular Computation Tool and understand its results
- Prepare observed financial records and verified caller terms. Use one currency for integer minor-unit money and preserve leading zeros in identifier text. One basis point is 0.01 percentage points. Resolve dates, local clocks, counting rules and evidence flags as specified.
- Enter firstBaseCurrency, firstQuoteCurrency, firstQuoteUnitsPerBase, secondBaseCurrency, secondQuoteCurrency, secondQuoteUnitsPerBase, observedDirectCrossQuote using the field table and calculation rules, then run the tool.
- Read derivedCrossBaseCurrency, derivedCrossQuoteCurrency, derivedCrossQuoteUnitsPerBase, signedDirectMinusDerivedQuote, signedDirectRelativeGapPercent. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| firstBaseCurrency | First base currency | string | Required |
| firstQuoteCurrency | First quote currency | string | Required |
| firstQuoteUnitsPerBase | First quote units per base | number | Required |
| secondBaseCurrency | Second base currency | string | Required |
| secondQuoteCurrency | Second quote currency | string | Required |
| secondQuoteUnitsPerBase | Second quote units per base | number | Required |
| observedDirectCrossQuote | Observed direct cross quote | number | Required |
Enter exact three-uppercase-letter currency labels, positive finite quote values and positive direct cross. Require first quote currency equal second base currency and three distinct endpoint/bridge labels. Return cross base/quote labels, derived quote, signed gap and percent gap. Labels are syntactic and not checked against a currency directory.
derivedCross=firstQuote×secondQuote; gap=direct−derived; relativeGap%=100gap/derived Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| derivedCrossBaseCurrency | Derived cross base currency | string |
| derivedCrossQuoteCurrency | Derived cross quote currency | string |
| derivedCrossQuoteUnitsPerBase | Derived cross quote units per base | number |
| signedDirectMinusDerivedQuote | Signed direct minus derived quote | number |
| signedDirectRelativeGapPercent | Signed direct relative gap percent | number |
{
"input": {
"firstBaseCurrency": "EUR",
"firstQuoteCurrency": "USD",
"firstQuoteUnitsPerBase": 1.2,
"secondBaseCurrency": "USD",
"secondQuoteCurrency": "JPY",
"secondQuoteUnitsPerBase": 150,
"observedDirectCrossQuote": 181
},
"output": {
"derivedCrossBaseCurrency": "EUR",
"derivedCrossQuoteCurrency": "JPY",
"derivedCrossQuoteUnitsPerBase": 180,
"signedDirectMinusDerivedQuote": 1,
"signedDirectRelativeGapPercent": 0.5555555555555556
}
}Limitations and assumptions
No quote inversion, market simultaneity, bid-ask spread or executable arbitrage is inferred.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Extremely large text inputs are rejected. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Forward Points Annualized Premium Calculator: Forward points describe a signed adjustment to a spot quote at an explicit point scale. Annualized premium depends on quote direction and day basis. For a complementary task, use Foreign Transaction Fee Total Cost Percent Calculator: Foreign-transaction cost can include a percentage fee plus independently observed conversion spread cost. The converted purchase base must exclude those extra costs.
References
-
Cross Rate Triangular Computation Tool — tool.io
Similar or alternative tools
- Forward Points Annualized Premium Calculator
Forward points describe a signed adjustment to a spot quote at an explicit point scale. Annualized premium depends on quote direction and day basis.
- Foreign Transaction Fee Total Cost Percent Calculator
Foreign-transaction cost can include a percentage fee plus independently observed conversion spread cost. The converted purchase base must exclude those extra costs.