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  1. #1
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    Advantages of exotic pairs.

    Since i started trading on forex, i've never traded on exotic pairs. I noticed that most traders also don't trade them. Now, i'm trying to find out whether these pairs have any form of advantage. I need your opinion guys.

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    HKDCHF used to be good for scalping.

  4. #3
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    I don't think it's a good idea, you should always choose the currency pair you are more familiar with and willing to study on.
    forex market is an international market. there are many traders for every currency pair.

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    They are usually more volatile and easier to see patterns think about it when market makers want to trap retailers they will do in on the majors 90% of the time as the most money is there.

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    I noticed that nobody has mentioned the spreads on these exotics. So many of them will cost you a lot of money up front upon entry of the trades. This is one reason so many people don't even think about them in the first place. The other reason is that they can be way too volatile. Not worth the headache, unless you really know what you are doing and you know the specific exotic intimately (no pun intended).

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    Quote Originally Posted by Mets View Post
    I noticed that nobody has mentioned the spreads on these exotics. So many of them will cost you a lot of money up front upon entry of the trades. This is one reason so many people don't even think about them in the first place. The other reason is that they can be way too volatile. Not worth the headache, unless you really know what you are doing and you know the specific exotic intimately (no pun intended).
    the truth is alot of brokers widen the spreads for exotics due to the lack of liquidity. therefore alot of retail traders do not find it worthwhile to trade exotics. also such pairs are not as volatile sometimes can just get stuck in a tight range for weeks.

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    Quote Originally Posted by Kristianto View Post
    the truth is alot of brokers widen the spreads for exotics due to the lack of liquidity. therefore alot of retail traders do not find it worthwhile to trade exotics. also such pairs are not as volatile sometimes can just get stuck in a tight range for weeks.

    Choosing mainstream pairs is always not a bad idea. you will have sufficient information to work on.

  9. #8
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    The main advantage of Forex market is the volatility. When you trade exotic pairs you loose a lot of it.

  10. #9
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    Quote Originally Posted by F0r3x View Post
    The main advantage of Forex market is the volatility. When you trade exotic pairs you loose a lot of it.
    My point is also that we should focus on the most familiar things.

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    i know of traders who have made tons of money on SEK, SGD, DKK all because they knew it was not so volatile and the central governments have signal their monetary policies opening. so i agree that if you are familiar with some currencies then there's money to be made there too.

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