My experience with exotic pairs hasn’t been so great either. There are better and more profitable pairs to trade.Exotics pairs are unstable. That’s the reason why the risk factor is high.
Is it better to avoid Exotic currency pairs? Why?
- Thread starter RobRoss
- Start date
What matters is how much money you are trading, the time frame you are trading and time constraints to get in and out (fade in/ out, seconds/ minutes/ days or weeks). If one is attempting to scalp a big account in Sgd/chf it could be a problem. If you are swing trading that pair and can fade in over multiple seconds or minutes, volume becomes less of an issue.
It is not just a Yes or No answer.
It is not just a Yes or No answer.
but you can trade in a micro account to see the performance how it works.
i dont support micro account for the traders who are particularly beginners , instead of this demo is really appropriate.
I would recommend avoiding trading exotic pairs because they tend to be more volatile and less liquid than major currency pairs. This can make it more difficult to enter and exit trades, and can also increase the risk of potential losses. In addition, exotic pairs may also be more prone to geopolitical and economic risks, which can further increase the level of risk. It is generally safer and more advisable to focus on trading major currency pairs, which tend to be more stable and easier to trade.
Trading exotic pairs can be a way for traders to diversify their portfolio and potentially tap into new markets. However, it is important to be aware that exotic pairs may be more volatile and less liquid than major or minor pairs, and may also be more difficult to analyse due to a lack of market data and historical price trends. Traders should carefully consider the risks and limitations of trading exotic pairs before deciding to include them in their trading strategy.
Well, these pairs are less liquid and more volatile than major or minor pairs, which can make them riskier to trade.