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. bublu

    bublu

    I guess new traders should always start with trading those currencies paired with the USD which have good amount of liquidity and competitive spreads to make profits.
     
    #381     Sep 11, 2024
    shine likes this.
  2. shine

    shine

    I think that the choice of pairs to trade depends primarily on experience and skills. So, if we talk about a beginner, he first needs to learn how to profitably trade less volatile and smooth pairs, and only then, with positive results and a proven and reliable trading strategy, can he move on to trading pairs with higher volatility to earn more.
     
    #382     Dec 23, 2024
  3. Waylen

    Waylen

    Exotic currencies like the Turkish Lira, Mexican Peso, and Brazilian Real tend to have lower liquidity and higher volatility compared to major pairs. This can lead to larger spreads, higher risks, and unpredictable price movements, making them more challenging to trade for most people. It's important to manage risk carefully.
     
    #383     Dec 24, 2024
  4. Exotic pairs like USD/TRY offer higher liquidity but are riskier due to volatility, lower liquidity, and wider spreads. For more stability, stick to major or minor pairs.
     
    #384     Jan 2, 2025
  5. Alexis_0

    Alexis_0

    Exotic currencies like the Turkish Lira, Mexican Peso, and Brazilian Real tend to have higher volatility, wider spreads, and lower liquidity compared to major currencies. These factors increase the risk of larger price swings and slippage. Many traders avoid them due to unpredictable movements and higher trading costs.
     
    #385     Jan 2, 2025
  6. bublu

    bublu

    The point is most of these exotic pairs could not be found on major brokers platform like hfm, octa, exness, xm, lmfx etc because they inherits a lot of liquidity and volatility risks so better to stick with the majors in start till becoming a full fledge trader to hunt profitability in exotic pairs.
     
    #386     Jan 8, 2025
  7. it all boil down to how much you know the pair, exotic pairs tend to move awkwardly, but given enough info they are pretty much tradeable with slight higher spreads. i do some exotic trading on lmfx too.
     
    #387     Jan 12, 2025
  8. shine

    shine

    Depends on what method you try to trade such pairs. That is, if we talk about scalping trading, then for example, trading EURUSD (my broker fxopen has a spread of only 0.1) will be much more profitable and safer than scalping trading with much larger spreads on exotic pairs.
     
    #388     Jan 13, 2025