Is it better to avoid Exotic currency pairs? Why?

[Abbas Ali Khan]

most of the time i like to avoid exotic pairs , because trading is expensive with these pair.

 

[bublu]

Whatever pair you trade, keep in mind taking risks to that extent which you can afford to loose.

 

[ElectricSavant]

Spread (cost)
some exotics only move a few hours per session

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?

 

[Burigelv]

There are popular pairs, with whom all the acquaintances with whom I have to trade for an exotic steam, need to be prepared separately

 

[bublu]

I prefer trading popular/major pairs only.

 

[shadybee]

Better avoid them only coz they've got less liquidity.

 

[clockwork71]

Exotics tend to be good for swing trading.....however - this means smaller positions. I think of them more like investments....USD/TRY would have been a great example over the last couple of years.

 

[tedmos38]

The most common reason for traders avoiding the exotic pairs is the less trading volume and low volatility, due to which there are more chances of slippage.

 

[Wolfe_tr]

I am mostly into major pairs.

 

[Goreseno]

Learning about exotic pairs will take a lot of time to the detriment of the rest of the trade.