Jump to content
  • 0
Sign in to follow this  
Danny

Can I trade exotic currencies in a Forex market?

Question

2 answers to this question

Recommended Posts

  • 0

Hello Danny,
Exotic currencies are the more infrequent ones in the Forex market. Probably only a few people talk about them, and you hardly hear about them. These currencies are more prone to changes, and they possibly frighten most investors.
These currencies however, provide excellent chances in the Forex market.
One reason why they give great opportunities in such markets typically compliant. If there is blow up in any support from them, then you have the chance to apply the succeeding degree of support for an extreme chance target. This is different for the major currencies that are carted off due to various market forces.
Exotic currencies also are highly mobile, a good reason why you should deal with them. You will most likely make a profit from such a moving currency pair.
It is also fun trading exotic currencies. They help break the monotony of trading the normally known currencies.
So yes, you can trade exotic currencies in a foreign exchange market.
 

Share this post


Link to post
Share on other sites
  • 0

Hello Danny,

You can certainly trade exotic currencies in Forex, however, most traders prefer trading the major and minor currency pairs over exotic currencies. Exotic currencies are not widely known as most of them come from developing countries. Training exotics could turn out very profitable for investors who are okay with dealing with great risk.

One of the reasons experienced investors should think about trading exotic pairs is because of their high-profit potential. A number of exotics are typically negatively correlated to the major currency pairs and because of that, they can represent great trading opportunities when the major pairs are not trending.

Exotics tend to experience large swings in price, thus traders who wish to trade them should be willing to face moves that stretch thousands of pips. Therefore, trading exotic currencies can be very risky but at the same time very profitable.
 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...