Is it better to avoid Exotic currency pairs? Why?

[socool]

yes agree exotic pairs have high volatile so not appropriate for beginners level.

I agreed. But I like to use some exotic pairs, the volatility is so good but cautious

 

[Bouffant]

Yes, I think it’s better for new traders to avoid exotic pairs because they
Offer low liquidity
Are complex to trade
Have high volatility
Have high spreads
Although if you are a professional trader and looking to diversify your portfolio, exotic pairs can be a good addition. Just make sure that you have a well planned risk management strategy.

 

[nonplussed]

Exotic pairs are not liquid and can be extremely volatile. That’s why traders should avoid these pairs. Also, because of high spreads, it can be costly to trade them.

 

[FahadMd]

exotic pairs have high spreads and for that reason beginners should avoid this in demo as well real.

 

[Lappaceous]

If you are an inexperienced trader, then it is better to trade with pairs that are less volatile. Major pairs like EUR/USD, USD/GBP, USD/JPY, are good choices. Exotic pairs are complex to trade and have high volatility.

 

[Svetlana Loboda]

for newcomers it is more appropriate not to trade with exotic pairs , should focus on major only

 

[radex78]

Trading exotic pair is really dangerous because the spread is so high and sometimes make boredom due less volatile, better to stay away from exotic pair, because this is too risky, I have bad experience trading exotic pair EURTRY which besides spread so high and face wrong direction, the loss will quickly make narrow equity

 

[Sycophant]

Trading exotic pair is really dangerous because the spread is so high and sometimes make boredom due less volatile, better to stay away from exotic pair, because this is too risky, I have bad experience trading exotic pair EURTRY which besides spread so high and face wrong direction, the loss will quickly make narrow equity

I totally agree, exotic pairs are very difficult to trade. As they are extremely volatile and least liquid, newbies should avoid trading them. Instead they should focus on trading major currency pairs.

 

[Oblectation]

Due to the high volatility, Exotic pairs can be really hard to predict and the spreads are also very wide on these pairs which makes it almost impossible to save profits. I would not advise it to beginners or even experienced traders who don’t have an appetite for a hige risk.

 

[radex78]

I totally agree, exotic pairs are very difficult to trade. As they are extremely volatile and least liquid, newbies should avoid trading them. Instead they should focus on trading major currency pairs.

Actually trading one pair major if already mastered trading strategy, could to gives good profit, focus on one pair and improve trading strategy, but many traders like to try multiple trading pair due curiosity