Is it better to avoid Exotic currency pairs? Why?

Discussion in 'Forex' started by RobRoss, Feb 22, 2017.

Do you trade Exotic Currency Pairs?

  1. Yes

    37.0%
  2. No

    63.0%
Multiple votes are allowed.
  1. Exotic pairs consist of major currency from developed country pairs to the currency from an emerging country, often affected by the news and political event in emerging countries, this needs high spread and higher risk.
     
    #241     May 3, 2022
  2. I won’t say that it would be the best decision to trade exotic pairs. But it can prove to be a profitable decision if you spend some time learning their movements. Because they are more volatile, they offer you more chances of making money. You just need to prepare yourself well before you take the risks.
     
    #242     May 18, 2022
  3. FahadMd

    FahadMd

    learning is important but any kind of approach can be useless if there is no regular level of practice.
     
    #243     May 18, 2022
  4. You should avoid them because they are highly volatile, and it could be difficult for inexperienced traders to trade with them. They can be profitable if you know the market. As a beginner, stick to major pairs since exotic pairs are complex to trade and also have high spreads.
     
    #244     May 18, 2022
  5. High spread is the cost for trading exotic pair, beginner not suitable to choose exotic pair, it will surprise them when open trade then dragged big floating loss not like as usual when choose major pair.
     
    #245     May 18, 2022
  6. for beginners EUR/USD, GBP/USD i think is more appropriate for the perfect comfortable trading spreads.
     
    #246     May 19, 2022
  7. very common suggestion but effective also.
     
    #247     May 19, 2022
  8. trading at the moment AUD/CAD
     
    #248     May 20, 2022
  9. Yes, they’re complex pairs and often expensive to trade because of high spreads. Though some trades trade with exotic pairs, they are also well-versed with the market and its strategies. As a newbie, it is better to avoid them.
     
    #249     May 31, 2022
  10. Unless you are an experienced trader then yes, i would agree with avoiding exotic currency pairs as it's the riskiest but also can be rewarding to trade with. New traders that lack proper risk management and planning will expose themself easily, major pairs are easier to stick to and trade with.
     
    #250     Jun 1, 2022