Playing safe, it that's a thing :)

Now that you’re into exotics try USDRUB too. It’s the most volatile pair moving at the average daily range of 4208 pips.

 

No doubt the moves are great but my question is how do I trade exotics without burning my fingers.

 

@Cortney, trade size is the solution and an indication suggesting the risk you’re taking while entering the position.

 

My dad’s been mentioning a lot about the trade size and probably that’s the reason he’s successfully trading exotics.

 

I traded 10K on USD/MXN with the pip value $0.08$ per pip. The average volatility on a mini lot turned out to be approx $85.60. Never thought trading exotic would be so cool and much lesser than what I traded with majors.

 

Do calculate the risk and reward of the pair provided of the small pip value. A strong trading plan is what will help you succeed in trading exotics.

 

Is the risk reward ratio while trading exotics different than major or minor?

 

@Neal post determining the trade size and the pip value with either of my brokers (fxview, fxpro) I simply set my trade with a strong 1:2 risk reward ratio. I suppose there’s no difference here. None that I have seen.

 

As a day trader, you will have to pick a market wisely that you are interested in and can afford to trade. And not to forget, you will also have to set up the right equipment and software.

 

To it, I would like to add that you must also choose a time of day to trade and should trade during that time only.