Yes, this is the case actually. Problem is not with the exotic pairs but it's about the level of knowledge and experience that traders have.
the movement of exotic pair is too high and volatile , so we the traders should avoid this and move on majors.
If you are having a hard time making profits trading major currency pairs, then you should definitely avoid exotic currency pairs because of high volatility and less liquidity. Once you are able to make consistent profits trading major pairs, then you can consider trying your hands on exotic pairs.
major currency is first choice , no doubt. but traders should acquire more knowledge about all currency .
Major currency pairs should be the first choice of the traders. Traders should avoid trading exotic currency pairs as they are highly volatile and offer very less liquidity. Traders, who are looking forward to trading them should have an appetite for greater risk.
Pairs that have high liquidity are beneficial to trade. Exotic pairs on the other hand are very thinly traded and hence very volatile. Moreover, they have high spreads, which makes them costly to trade .
Traders should avoid trading exotic pairs because- -They’re complex to trade - High volatility - High spreads - Low liquidity
for that reason i always suggest major currency to trade for the traders who are particularly newcomers.
Generally, traders avoid trading with exotic pairs because of high spreads and high volatility, which makes them risky and expensive to trade.