Is it better to avoid Exotic currency pairs? Why?

Although there are some disadvantages of it, but if we keep in mind that due to inflation rate differentials and sometimes even the economic instability, some emerging market currencies are engaged in the long-term downward trend against some major currencies, it can be given a thought. You can choose from Fxview, FXTM, Etoro, XM. These brokers are more reliable and have low fees as compared to brokers in other trading platforms.

 

Yes indeed some emerging currency maybe will become increase transaction, I ever read about Lira Turkish that moves very larger than another pair when Turki vs the US in a hot political issue, but now the price seems in normal movementt

 

Agreed, plus this pandemic really affected 3rd world countries most that makes them more difficult to have positive BOPs.

 

There is a reason its called exotic
there is less liquidity and the price movement is heavily dependent on the political and economical events of that country
technical are not as easy as they are on other pairs.
The spreads also tend be larger on them and a lot of gaps
all these things factor in together and makes it harder for majority
but if you understand the language of that exotic pair, you can always master it

 

It would be better to avoid all the things that distracts you from making money through your trades.

 

I trade USDRUB but don't use leverage. Simply wait for some shock hitting the currency then take long position and carry traders will do the rest.

 

Exotic pairs are not the same as major pairs, and they are less popular among traders because their spreads are higher and can be difficult to predict.

 

I think their volatility can be harnessed if you know what to do with it. Some of the exotic pairs that I tried are quite good to use if I knew what to do with it.

 

Exotic currency pairs are considered to be the third most traded in the forex market. These pairings would be including the combination of one of the 8 major currencies as well as a currency from a developing or emerging economy.

 

I avoid trading with exotic currency pairs because the spreads are higher when trading with them, and compared to major pairs, the exotic is not popular among traders.