Is it better to avoid Exotic currency pairs? Why?

[Ahmed Solaiman]

thanks for your nice post.

 

[Jakub Mitchell]

No, it’s not a good idea to not trade exotic currency pairs especially when they offer more money-making opportunities in comparison to the major or minor pairs.

 

[Abbas Ali Khan]

but you can trade in demo any exotic pair to the performance how it works.

 

[Lustrous]

They’re complex pairs, and they are liable to high spreads, which makes trading these pairs quite costly.

 

[radex78]

Exotic pair is high-risk trading pair, the most problem is high spread and volatility, Traders need more understanding of the country's condition based on currency trading, political tension, and interest rates may high impact on the currency, once I am trading an exotic pair EURTRY in my broker FXOpen, but fail. now try to focus on major pair and gold.

 

[Scepsis]

but you can trade in demo any exotic pair to the performance how it works.

And one should confine exotic pairs to demo only. I find exotic pair extremely risky to trading.

 

[Mytacism]

Exotic pairs are composed by combining major and minor currency pairs and are highly volatile and offer very less liquidity and widest spreads.
Traders who wish to trade these pairs need a large trading capital to compensate with the spreads.

 

[Sugawara Michio]

Exotic pairs are thinly traded because they have less liquidity and these pairs can be very volatile, which new traders should generally avoid.

 

[kroxobor]

Exotic pairs are composed by combining major and minor currency pairs and are highly volatile and offer very less liquidity and widest spreads.
Traders who wish to trade these pairs need a large trading capital to compensate with the spreads.

As for exotic pairs, the only trading style or system that can be used with them to trade profitable is carry trading. Pairs like USDRUB, USDZAR, USDMXN tend to exhibit mean-reverting properties, so the odds are on your side when you enter (exit) a carry trade after considerable deviation in either side.

 

[AndrewMcCalam]

trading at the moment AUD/CAD

do you scalping by this pair ?