Most traded exotic currency pairs in the forex market

Conservative traders who prefer long-term forex investments often prefer to trade only exotic currency pairs. Such forex pairs are less volatile and suitable for long-term holding. Exotic currency pairs offer opportunities in long-term investments for swing traders. Beginners find exotic pairs very attractive as it is very easy to master their price movement. Therefore, we have exposed the best exotic pairs for long-term investors and beginners to choose from below.

What is an Exotic Currency Pair?

An exotic pair crosses the significant currencies with any other currency from the developing countries. The term exotic refers to the indigenous currency of the developing countries. These sets of forex pairs are the third most traded in the forex market today. Another way of describing exotic pairs is as a cross between the local currency of those countries with smaller economies against those of a larger one, such as the dollar, EuroPounds, and others.

exotic forex pair

15 most traded exotic pairs in the forex market today

  1. Euro/Hungarian Forint (EUR/HUF) 
  2. Euro/Polish Zloty (EUR/PLN) 
  3. Euro/Turkish Lira (EUR/TRY) 
  4. US Dollar/South Africa Rand (USD/ZAR) 
  5. US Dollar/Swedish Krona (USD/SEK) 
  6. US Dollar/Russian Ruble (USD/RUB) 
  7. US Dollar/Norwegian Krone (USD/NOK) 
  8. US Dollar/Mexican Peso (USD/MXN) 
  9. US Dollar/Danish Krone (USD/DKK) 
  10. US Dollar/Hong Kong Dollar (USD/HKD) 
  11. US Dollar/Chinese Offshore Yuan (USD/CNH) 
  12. US Dollar/Singapore Dollar (USD/SGD) 
  13. US Dollar/Czech Koruna (USD/CZK) 
  14. US Dollar/Turkish Lira (USD/TRY) 
  15. US Dollar/Hungarian Forint (USD/HUF) 

Advantages of trading Exotic Pairs

  • They are straightforward to master.
  • Suitable for long-term investments.
  • Lucrative and offer good profits.
  • Great for diversifying investments.
  • It is a recommended pair for beginners.

Disadvantages of trading Exotic Pairs

  • They have low volumes traded daily and are not suitable for scalping.
  • Illiquid and lacking market depth. Thus, more inferior liquidity with higher volatility increases the risk of forex slippage.
  • They can be highly volatile when important economic data is released.
  • It could be expensive. The bid-ask spread is usually significant to compensate for the lack of liquidity.
  • Trading CFDs has some risks associated with them. Every trader needs to understand before venturing into it.

Learn about factors that influence exchange rates in the forex market

Which broker is best for trading forex?

Given the delicate nature, ECN brokers such as ATFX are the best option for trading as they offer the lowest spread. Using an Electronic Communication Network enables them to place the order directly into the market where we have huge investors bargaining at the same time, therefore reducing slippage. There are several exotic currency pairs provided by ATFX and is readily available for investors to trade.

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