In fact, because they are riskier, you can make serious cash
with exotic pairs, just be prepared to lose big too.
For these pairs, overnight interest is excellent — as low as 0 % for EURUSD and 0.0093 % for
more exotic pairs like AUDJPY.
If at any time the account equity reaches or falls below the Liquidation Margin Level (typically 1 % for major currency pairs and 2.5 %
for exotic pairs), the Smart Margin feature will automatically trigger the liquidation of all open positions.
Spreads can be as high as 100 pips
on exotic pairs such as the USD / MXN or USD / ZAR.
Forex primarily deals with 8 major currencies and some
other exotic pairs too, whereas there are about 5,000 public trading companies in U.S alone.
Trading exotic pairs and less - liquid markets as well as time frames under the 1 hour charts is something traders have a tendency to do if they can't find any trades on the major currency pairs and other major markets.
Cryptocurrencies, All Major Pairs, All Minor Pairs & Cross Currencies,
few Exotic pairs, metals and indices simultaneously on all time frames.
I suggest sticking with one of the major currency pairs or one of the more popular crosses as they are the most liquid, have the tightest spreads and will generally behave more «predictably» than the
more exotic pairs.
Thai artisan Nareerat designs
this exotic pair of dangle
It works well with majors, currency crosses and
exotic pairs.
The exotics can also be much more volatile and thus less reliable than the majors and crosses, due to the thin liquidity in
the exotic pairs they can move quite quickly and «jump around» or «slip» much more often than the majors or crosses.
However, before venturing into
any exotic pairs, it's worth putting it through its paces with the major pairs.