What are exotics in forex?

Exotic currencies are currencies that are thinly traded in foreign exchange markets and are not widely used in global financial transactions. Exotic currencies are illiquid, lack market depth, can be extremely volatile, and trade at low volumes.

Should you trade forex exotics?

Exotic forex pairs can provide you with an opportunity to diversify your trading. Exotic currencies have a higher level of volatility, which increases the risk of trading them, but also offers the chance of finding trading opportunities should there be none in the major FX pairs.

What are exotic pairs?

Exotic pairs usually consist of a major currency alongside a thinly traded currency or an emerging-market economy currency. Examples include USD/TRY, USD/MXN or EUR/HUF. A benefit to trading exotic pairs is that they may offer higher potential returns due to wide price fluctuations.

What are some examples of exotics?


  • introduced from another country : not native to the place where found exotic plants … …
  • strikingly, excitingly, or mysteriously different or unusual exotic flavors Until very recently the alpaca was an exotic sight at county fairs and petting zoos in the metropolitan region.—
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Which of the following is considered an exotic pair in the forex?

Exotic currency pairs include one major currency alongside a currency from a developing or emerging market. For example, an exotic forex pair would be formed when an exotic currency, such as the Turkish lira (TRY) or Hungarian forint (HUF), is paired with a major currency, such as the US dollar (USD) or euro (EUR).

What are examples of exotic currencies?

Examples of exotic currencies include the Thai baht, the Uruguay peso, and the Iraqi dinar. On the other hand, major currencies include the U.S. dollar, the euro, the Canadian dollar, and Swiss franc—all from developed countries with large economies and trading relationships.

Which forex pairs move the most?

The most volatile major currency pairs are:

  • AUD/JPY (Australian Dollar/Japanese Yen)
  • NZD/JPY (New Zealand Dollar/Japanese Yen)
  • AUD/USD (Australian Dollar/US Dollar)
  • CAD/JPY (Canadian Dollar/Japanese Yen)
  • AUD/GBP (Australian Dollar/Pound Sterling)

Is INR currency exotic?

Some of the most commonly traded exotic currencies are the Mexican peso (MXN), Chinese yuan (CNY), Russian rouble (RUB), Hong Kong dollar (HKD), Singapore dollar (SGD), Turkish lira (TRY), South Korean won (KRW), South African rang (ZAR), Brazilian real (BRL) and Indian rupee (INR).

What are the 7 major currency pairs?

7 major forex pairs

  • The euro and US dollar: EUR/USD.
  • The US dollar and Japanese yen: USD/JPY.
  • The British pound sterling and US dollar: GBP/USD.
  • The US dollar and Swiss franc: USD/CHF.
  • The Australian dollar and US dollar: AUD/USD.
  • The US dollar and Canadian dollar: USD/CAD.
  • The New Zealand dollar and US dollar: NZD/USD.
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What are the 8 major currency pairs?

What Are Currency Pairs?

  • USD/JPY. This currency pair sets the US dollar against the Japanese Yen.
  • USD/GBP. This currency pair sets the US dollar against the United Kingdom pound and is commonly referred to as the pound-dollar.
  • USD/CHF. …
  • USD/CAD. …
  • AUD/USD. …
  • NZD/USD.

Does exotic mean beautiful?

And it’s all wrapped up in one word: exotic. … Keep in mind, the word itself isn’t bad — a tropical bird can be exotic for instance, literally meaning that it’s a bird from a foreign place. But using “exotic” to validate a person’s beauty is basically saying that it’s not a true or pure beauty.

What is exotic food?

Exotic food is food that a person finds strange and/or unfamiliar. Exotic food can be unusual types of meats, fruits, vegetables or spices or it can be the way that the food is prepared.

What are exotic securities?

Exotic options are a category of options contracts that differ from traditional options in their payment structures, expiration dates, and strike prices. … Exotic options are hybrid securities that are often customizable to the needs of the investor.

What is the most volatile forex pair?

Classifying currency pairs by volatility

Most volatile pairs are GBP/CHF and GBP/JPY. Their volatility is 100-140 points on average depending on the trading session. For such pairs, choose a trading strategy that correlates with their ranges.

Is HUF an exotic currency?

Some popular exotic currency pairs include: USD/HUF (US Dollar/Hungarian Forint) USD/SEK (US Dollar/Swedish Krona) USD/TRY (US Dollar/Turkish Lira)

What are major pairs in forex?

What Are Major Pairs? The major pairs are the four most heavily traded currency pairs in the forex (FX) market. The four major pairs at present are the EUR/USD, USD/JPY, GBP/USD, USD/CHF. These four major currency pairs are deliverable currencies and are part of the Group of Ten (G10) currency group.

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