I am studying level II and I have encountered the cross rate section and I don’t under stand why we need to do that
For example, If the spread of USD/EUR= 1.1503 - 1.1507
If we want to get the Bid for EUR/USD , we need to use 1 divided by the Ask(Offer) rate of USD/EUR $1.1507.
I don’t under why it is not 1 divided by the bid rate of USD/EUR which is $1.1503 ?
Please help me to understand the methodology behind this. Much appreciate.