Is it better to avoid Exotic currency pairs? Why?

[deeliman]

Exotic pairs are not necessarily "bad" to trade, but they may present certain challenges and risks that traders should be aware of. Though they may be less liquid and more volatile than major or minor pairs, they are potentially more lucrative. If you want to trade them, then carefully research and understand the economic and political factors that may impact the value of the currencies involved.

 

[Zafar Al Asad]

yes exactly , exotic pairs are not necessary , but for increase your trading performance very rapidly you can trade that pair in demo to see the performance how it works.

 

[tomCooper]

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.

this is a good reply about exotic pairs , thanks for your nice reply

 

[Zafar Al Asad]

do you trade any exotic pairs at all ? whats your experience about this ?

 

[Henry520]

to trade at any exotic pairs is really a risky approach , nothing without it . so we the traders should be more careful when trading in practical.

 

[camera]

Sometimes I try to, but it is quite risky especially with their volatility level.

 

[Svetlana Loboda]

risk is everywhere in Forex trading , because there is no one who can predict the real faction of this market with certainly. happy trading

 

[Rodri]

Trading exotic currency pairs, in my opinion, is more difficult than trading other pairs.

Furthermore, unlike major pairs like EUR/USD, USD/JPY, and so on, they do not have tight spreads.

 

[FahadMd]

this is difficult but for increasing trading performance very rapidly we should trade this exotic pairs , no way to deny

 

[Tradess0610]

I do not trade the exotics. But the question did come to my mind many times, maybe someone who trades exotics can give some insight:

are the movements in the exotics more closely related to the general movement of the "major" currency?

And could we therefore attribute the movements of the exotic pair mostly to the movement of the "major" currency in the pair?

And would this make TA easier or more complicated?