Is it better to avoid Exotic currency pairs? Why?

[PeterNguyen]

If you are new to forex then it is easier to stick to major pairs and avoid exotic pairs for now. But if you have experience and want to explore other options, exotic pairs are perfectly fine to give it a go and trade.

 

[Killjoy]

No, I don’t think it’s a good idea to avoid exotic currency pairs because they have more chances of giving you profits. But if you are just starting, then you should avoid them for as long as you can. They are highly volatile and you may not be able to handle them if you lack experience.

 

[JimmyChoo]

its a chance to bring profit by trading exptoc pair on the other hand there is a lack of security issue compare to major pair.

 

[AndrewMcCalam]

Not really! In fact, exotic currency pairs have the most chances of letting you make money. But since they are highly volatile, you may have a tough time making money by trading them. You need a deep understanding of the currency pairs and proper market analysis to check the price directions and make money with them.

good reply , good information , thanks for your nice post.

 

[Cleromancy]

If you are an explorer in the world of currencies and are doing very well on major or minor pairs, there’s no harm in expanding your board to exotic pairs as well. However, if you are only trying to earn some extra money safely and if you can’t afford losing your money then you should stay away from such highly volatile pairs.

 

[Money Trust]

The spreads are ridiculous on exotic pairs.....

 

[JimmyChoo]

If you are an explorer in the world of currencies and are doing very well on major or minor pairs, there’s no harm in expanding your board to exotic pairs as well. However, if you are only trying to earn some extra money safely and if you can’t afford losing your money then you should stay away from such highly volatile pairs.

perfect advice.

 

[Sahil Thind]

Exotic pairs bring , as the name suggests, a very low level of liquidity and high volatility, compared to majors, which in turn can lead to high profits. But they're also affected by several factors like local crisis phenomena and the resulting high volatility for uncertain periods of time. That does not mean it should be discouraged, you can certainly check out regulated ECN brokers like fxview and if you feel comfortable with the uncertainty.

 

[Tritical]

I avoid exotic pairs because they are less liquid and complex to trade. They can be highly volatile, which can result in big losses, especially if you are an inexperienced trader.

 

[FahadMd]

according to me, besides live trading it is more appropriate to use all trading pair in demo to see the performance how it works.