Is it better to avoid Exotic currency pairs? Why?

Do you trade Exotic Currency Pairs?

  • Total voters
    44
On spot is spread wider. Look on BM&F Bovespa is USDBRL futures contract with daily average more than 300 thousand contracts a day with spread 1 tick. If i would have access through my brokerage i would trade this instrument.
 
Liquidity my friend, liquidity! Exotic currencies have wider spreads and are more easily manipulated. Coming from a London sales & trading background, I do state that manipulation does certainly take place. One should be extremely well informed to trade exotic pairs successfully.
 
After I tried trading non-majors, I only lost and lost. That's why I stopped it and continued watching EUR USD
people say that I have to know the economical and political situations of the countries, but I tried to do it with naked technical analysis :D nonooo won't do it again
 
Yes, I do trade exotic pairs but sometimes, as I am new and I can not handle the high movement of them. So try my luck with them, but no too much.
 
Mohdfx said:
After I tried trading non-majors, I only lost and lost. That's why I stopped it and continued watching EUR USD
people say that I have to know the economical and political situations of the countries, but I tried to do it with naked technical analysis :D nonooo won't do it again
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Cuz its was purely improper approach. Could you tell me how you got understanding of fundamental concepts by using naked technical analysis? Its a nonsense.
 
Esha.J said:
Yes, I do trade exotic pairs but sometimes, as I am new and I can not handle the high movement of them. So try my luck with them, but no too much.
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Better to stick with majors especially EURUSD, for it is a popular pair and besides going to too many options (becoming jack of all trades) i prefer mastering in one single asset which is rewarding in my opinion.
 
It is always good to use your main pairs for trading but try new exotic pairs with demo experience is also a good idea to get good profit from the market.
 
Those exotic pairs have liquidity issues, higher spreads etc but better you still have options what to trade so best of luck..!
 
It really depends on your strategy.

I've never traded exotics but pulling up a USDMXN and USDTRY for example and scrolling back in chart history, my strategy would have worked just as well.

This week, I'll be adding those pairs to the mix.
 
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