Is it better to avoid Exotic currency pairs? Why?

Do you trade Exotic Currency Pairs?

  • Total voters
    44
lovethetrade said:
If you're a short-term and purely technical trader it makes no difference IMO. Trade whatever pair that gives you a signal, is trending, has the best carry or whatever and represents the best opportunity at that point in time.
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You mean but is it - By knowing the Full Charting Ratio is the only way that you can succeed within the Forex Maze - I should know Bud.
 
lovethetrade said:
If you're a short-term and purely technical trader it makes no difference IMO. Trade whatever pair that gives you a signal, is trending, has the best carry or whatever and represents the best opportunity at that point in time.
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You've got an advantage over me if you do that. Trading exotics long-term, with a stop-loss 2 ATR's from entry would cost me a big bite of the account. Shame though.
 
RobRoss said:
Lately, I have been watching the market of exotic currencies which are not so commonly traded. Especially Turkish Lira, the Mexican Peso and the Brazilian Real. One of my friend said, you must avoid those pairs. That's what he learned from the experts. He could not explain it to me. Can anyone here explain that? Why exactly most people avoid these currencies?
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For the most part, yes trading exotics is a horrible idea, but within the classification of "exotic" there are pairs that trade a narrower spread than most of those. Those being Sgd and Hkd, these can definitely be traded on larger time frames. You still have to cover the commission of spread though and this can be a killer.
 
If problem centers around placing 2 many trades that are unreliable check out my comments at this site threads on EurUsd Or GBpusd Pair as of current reliability Price is produced at so much accuracy as in bang on the pip - You will find the Pairs have use the Support Levels as Allocated just fine - with targets and take profit marks surrounding the entire structor of the investment plan.
 
EM markets now in squeeze - why not to take advantage of this guys. I don't care about spreads, just look on fundamentals. Fed QE - EM stock price bubble, credit growth, Fed QT - yes inflated emerging markets like Russia and Turkey have to explode. Their fiat is the known victim
 
Well there are some people who trade exotics and make good money off it. The main thing here is your knowledge and awareness about markets and economy. However, generally speaking most people will tell you to keep away from exotics because of the large spreads and thin liquidity. You'll need to scout real hard for information on such pairs in order to conduct your analysis.
 
There are people who trade each and every instrument out there, no matter how outlandish it may seem to other people. The question is whether the majority of traders should join them or not, I think.
 
mlawson71 said:
There are people who trade each and every instrument out there, no matter how outlandish it may seem to other people. The question is whether the majority of traders should join them or not, I think.
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Probably yes because then there will be more liquidity on the market, i.e. more favorable conditions for us to trade
 
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