Because low global rates don't warrant being in the swaps unless you're a long term holder. The IR differential doesn't warrant trading these huge spreads. It's a function of rates. Obv it has improved in recent months.
I would advise beginners to be careful enough about exotic ones, because here you need experience and an understanding of what nuances lead to
we the traders should choose the pair which is more appropriate to the concept of trading that will be used ,
Yes that is a great advice, if we learn about something and does not implement it on the right thing then it is just the waste of time and efforts.
Very well said! They are labelled as exotic for a reason. The lack of liquidity can lead to larger volatility as less capital is needed to move these markets. Most of the professionals ive spoken to, have strayed away from actively trading these currencies.
The exotic currencies some of the best opportunities in foreign exchange (FX). ... However, nobody ever made profits with a stagnated currency pair.TheExotic currency pairs include one major currency alongside a currency from a developing or emerging market. For example, an exotic forex pair would be formed when an exotic currency, such as the Turkish lira (TRY) or Hungarian forint (HUF), is paired with a major currency, such as the US dollar (USD) or euro (EUR). EUR/USD is not just the easiest, but also the most stable currency pair to trade. It is the best choice not only among beginners but also for professional traders. This is one of the most traded currency pairs due to tight spreads and liquidity.
It also matters how much capital one is trading. Whether one is just another fish hiding among the waves, a whale pushing the price around or mid size in the wrong tidal zone open to attack.