moonchild
VIP Contributor
Exotic pairs are pairs that moves the least during trading hours and they are Volatile also because they're affected by economic activities, interest rates, unemployment report, foreign direct investments among others
They are also less liquid, which means you can profit from it and gain liquidity.
To trade exotic pairs you, the strategy is still the same with other currency pairs, the only thing you need to keep in mind is that they are very Volatile, and if care is not taken your account can be blown.
So it is advisable to use a very small lot size and monitor your trades carefully.
Some example of exotic pairs are
USD/TRY
USD/SEK
USD/ZAR
USD/JPY
As you can see the base currency is a weaker currency than USD, this is what will create balance within the market and provide liquidity for you as trader.
It can be advantageous to a trader if he has a risk appetite and can monitor his trade, it can offer a good return on investment on your account.
It is also advisable to trade exotic pairs in a day, it is not advisable to hold a trade overnight because it is very Volatile and a strong reversal may occur which may cause a drawdown.
They are also less liquid, which means you can profit from it and gain liquidity.
To trade exotic pairs you, the strategy is still the same with other currency pairs, the only thing you need to keep in mind is that they are very Volatile, and if care is not taken your account can be blown.
So it is advisable to use a very small lot size and monitor your trades carefully.
Some example of exotic pairs are
USD/TRY
USD/SEK
USD/ZAR
USD/JPY
As you can see the base currency is a weaker currency than USD, this is what will create balance within the market and provide liquidity for you as trader.
It can be advantageous to a trader if he has a risk appetite and can monitor his trade, it can offer a good return on investment on your account.
It is also advisable to trade exotic pairs in a day, it is not advisable to hold a trade overnight because it is very Volatile and a strong reversal may occur which may cause a drawdown.
