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Exotic Currency Pairs

@santri: I don't think so the one that use more by trader is a major pair, Why we said it's major because it is popular compared to the others. Exotic Currency pair is not that popular and has higher spreads so be careful with it when you trade with exotic currency.
 
@santri: I don't think so the one that use more by trader is a major pair, Why we said it's major because it is popular compared to the others. Exotic Currency pair is not that popular and has higher spreads so be careful with it when you trade with exotic currency.
Its called major pairs not because its popular but because its floated. Floated means theirs no restriction by their government. So any one can trade that pair. Exotic pairs on other hand are regulated pairs. For example. Yuan. A Chinese currency. Its still consider exotic even though China is now the second biggest economy and widely traded currency. Its because its been restricted by Chinese government.
 
Its called major pairs not because its popular but because its floated. Floated means theirs no restriction by their government. So any one can trade that pair. Exotic pairs on other hand are regulated pairs. For example. Yuan. A Chinese currency. Its still consider exotic even though China is now the second biggest economy and widely traded currency. Its because its been restricted by Chinese government.
I think it is popular because SGD and CLP which i ever traded also floated and there is no restriction and people still say that USDSGD or USDCLP is exotic.
 
I think the same way too. I think the reason they are called exotic is because of their unpopular nature. Maybe right, maybe wrong but what I feel is that they are just as popular as the floated ones and that I'd the main reason of their exotic name.
 
I think it is popular because SGD and CLP which i ever traded also floated and there is no restriction and people still say that USDSGD or USDCLP is exotic.
SGD- Singapore dollar before is pegged to the British pound and then the U.S. dollar until the mid 1980s. And even though its floated now its still consider exotic since its strictly regulated by closely monitored by the Monitory Authority of Singapore (MAS) against a concealed basket of currencies of Singapore's major trading partners and competitors. So in short the price can be manipulated by MAS for its own advantages. Same also to CLP.

If popularity is the only basis then I'm sure Yuan will not be consider an exotic currency. Since its trading volume is second to Yen in Asia. And beside even SGD is more popular than AUD and NZD. So why is Yuan and SGD that is more popular than AUD and NZD is consider exotic? And why is AUD and NZD consider a major?
 
exotic pairs is kind of pairs which it less traded. it does not popular and so, less traders involve on the market. the best is when traders take long approach, when they are trade on exotic pairs. and if want to take intraday approach, better trade on major pairs. which it offering high level of volatility.
 
SGD- Singapore dollar before is pegged to the British pound and then the U.S. dollar until the mid 1980s. And even though its floated now its still consider exotic since its strictly regulated by closely monitored by the Monitory Authority of Singapore (MAS) against a concealed basket of currencies of Singapore's major trading partners and competitors. So in short the price can be manipulated by MAS for its own advantages. Same also to CLP.

USD, Yen, Swiss Franc still closely monitored, USD has more elegant way but if you remember that in 2003 Japanese central bank intevene USDJPY with 3 trillion yen also SNB intervene forex market by the end 2009.

This exotic currency pairs is not about is that monitored or not, because i am sure all currencies monitored too and all central bank can manipulated it directly or indirectly, This is all about popularity, if it has lower popularity means less transaction means less liquidity.

Exotic currency pairs are made up of a major currency paired with the currency of an emerging or a strong but smaller economy from a global perspective. Exotic currencies also are illiquid and trade at low volumes. Trading an exotic currency can be expensive, because bid-ask spread is usually large.
 
USD, Yen, Swiss Franc still closely monitored, USD has more elegant way but if you remember that in 2003 Japanese central bank intevene USDJPY with 3 trillion yen also SNB intervene forex market by the end 2009.

This exotic currency pairs is not about is that monitored or not, because i am sure all currencies monitored too and all central bank can manipulated it directly or indirectly, This is all about popularity, if it has lower popularity means less transaction means less liquidity.

Exotic currency pairs are made up of a major currency paired with the currency of an emerging or a strong but smaller economy from a global perspective. Exotic currencies also are illiquid and trade at low volumes. Trading an exotic currency can be expensive, because bid-ask spread is usually large.
Do you know Yuan? Hong Kong dollars? Singaporean dollars? Their economy is much much bigger than New Zealand. And yet they are not consider major currencies. Simply because they are regulated and not floated. Anyway do you know what floated currencies means? A currency can become major if its not strictly regulated and that country economy is stable enough to handle world market transaction.
 
Do you know Yuan? Hong Kong dollars? Singaporean dollars? Their economy is much much bigger than New Zealand. And yet they are not consider major currencies. Simply because they are regulated and not floated. Anyway do you know what floated currencies means? A currency can become major if its not strictly regulated and that country economy is stable enough to handle world market transaction.

Of course i know, and why New Zealand? Why not Japan? why not UK? why not Australia? Their economy is big yet there are intervention from central bank which means this currency is regulated also still considered as major currencies not as Exotic one

Floated currency is type of exchange-rate regime where one currency's value allowed to fluctuate according to forex itself which means no intervention. Exotic currency is floated but still regulated to certain extent and for sure not popular. the efect of that popularity, is lesser liquidity people does not attracted to trade with it.
 
do you consider the economic of such country because from what I know a good trader will first of all look and see how each country currency is working for me the eur/usd is always the best pair for me which I can always trade but first I have to know what is happening to such pair before I trade
 
Of course i know, and why New Zealand? Why not Japan? why not UK? why not Australia? Their economy is big yet there are intervention from central bank which means this currency is regulated also still considered as major currencies not as Exotic one

Floated currency is type of exchange-rate regime where one currency's value allowed to fluctuate according to forex itself which means no intervention. Exotic currency is floated but still regulated to certain extent and for sure not popular. the efect of that popularity, is lesser liquidity people does not attracted to trade with it.
For your information. Japan uses Yen and UK uses Great Britain Pound and Australia as Australian dollars. They are not exotic currencies. They are major currencies. So I guess its settled. You really don't know what are majors and what are exotic pairs. Because three major currencies you consider not a major pair? wow.
 
For your information. Japan uses Yen and UK uses Great Britain Pound and Australia as Australian dollars. They are not exotic currencies. They are major currencies. So I guess its settled. You really don't know what are majors and what are exotic pairs. Because three major currencies you consider not a major pair? wow.
Again failed to understand my post, They are major and not exotic, it is totally clear that NZD also major currencies, i am asking why you compared those hongkong and china to NZ not UK or JP which are also their currency are major pair. And i don't know what major and exotic pair difference? Well, look my previous posts to know. I guess it's settled, it seems you always failed to understand my post.
 
Again failed to understand my post, They are major and not exotic, it is totally clear that NZD also major currencies, i am asking why you compared those hongkong and china to NZ not UK or JP which are also their currency are major pair. And i don't know what major and exotic pair difference? Well, look my previous posts to know. I guess it's settled, it seems you always failed to understand my post.
Actually you are the one who failed to understand at all. Or you just forgot what we are discussing in here? The issue in here is that you said its become a major currency because its popular and that's what I am disputed. Because if your basis is just popularity then Yuan of China and Hong Kong dollars and Singaporean are much much popular and yet they are not a major currency. So its not right to base a currency for its popularity to be consider major. As I stated NZ dollars is not popular and yet its consider major.

Now what is the issue in UK Pounds and Japan Yen? It a major currency. Theirs no question about it. Your are the one who drag this two currency in the first place. As theirs no dispute that this is a major pairs.

Now what you are disputing in my side is that currency that consider majors are currency that is floated in the market. Japan Yen and UK Pounds are floated currency. So in fact its supported my post that Majority pairs is base on currency that is floated. NZ dollars is a major pairs simply because its floated.
 
The group of Exotic currency pairs which are characterized by relatively low trading volumes and high spreads includes the least popular instruments available in the currency market. They consist of currencies which liquidity is almost entirely provided by the main reserve currencies: the U.S. dollar and the Euro.
 
On general terms that is true. That's why they are exotic because the pair volume is not enough to be consider as a major pair. But the big question is what is the reason why its does not have enough volume? To be more specific for me is the best way to understand what make them difference than major pairs. The reason why they end up exotic pairs and not major pairs.
 
To be honest, I am not interested in exotic trading pair! Because of low volatility, on the other hand the trading spread is too much high on exotic trading pairs! In my trading, I use only major Forex currencies!
 
I came across these pairs whle checking on the TV news and found that very few people are going to be trading in it. I wonder why? because some of these pairs are local and they do have some benefit for trading in them. they may not be a high earner but surely worth trading for. Have you found exotic currency pairs for your benefit or you don't like trading in them?

I am interested in knowing about them because if the profit is consistent, it would be worth risking in that instead of major currency pairs. like say USD, EUR and others.

Trading exotic pairs could be worth if you have necessary skills and knowledge about those pairs. What I found that every pair has its own specific characteristics. Sometimes they may behave the same but they have some uniqueness. Most traders fail because they use same strategy for many pairs. As a result after sometime it doesn't work. Choose your desired pair and research on it.
 
Trading exotic pairs could be worth if you have necessary skills and knowledge about those pairs. What I found that every pair has its own specific characteristics. Sometimes they may behave the same but they have some uniqueness. Most traders fail because they use same strategy for many pairs. As a result after sometime it doesn't work. Choose your desired pair and research on it.

Exactly; even exotic trading pairs are more challenging because of uneven behaviors & big trading spreads.
 
@santri: I don't think so the one that use more by trader is a major pair, Why we said it's major because it is popular compared to the others. Exotic Currency pair is not that popular and has higher spreads so be careful with it when you trade with exotic currency.

Exotic trading pairs? No way!! Because of low volatility! Till now major fx pairs are my main choice! Besides, nowadays I have added crypto pairs on my hart!
 
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