Today I will be discussing about pairs in the forex market known as ''Exotic Pairs''.
Exotic pairs are made up of one major currency paired with the currency of an emerging economy,such as Brazil,Mexico,South Africa,Hungary etc.Depending on your forex broker, you may see the following exotic pairs so it's good to know what they are. Keep in mind that these pairs aren't as heavily traded as the "majors" or "crosses," so the transaction costs associated with trading these pairs are usually bigger.
Take a look at the following list of exotic currency pairs because you may
be interested in diversifying your forex portfolio with a few uncorrelated
currency pairs:
Pair
|
Countries
|
FX Geek Speak
|
USD/HKD
|
United States / Hong Kong
| |
USD/SGD
|
United States / Singapore
| |
USD/ZAR
|
United States / South Africa
|
"dollar rand"
|
USD/THB
|
United States / Thailand
|
"dollar baht"
|
USD/MXN
|
United States / Mexico
|
"dollar peso"
|
USD/DKK
|
United States / Denmark
|
"dollar krone"
|
USD/SEK
|
United States / Sweden
| |
USD/NOK
|
United States / Norway
|
Be careful when trading these pairs because of the transaction costs am writing this from my own personal experience.
When we talk about exotic pairs, very few traders around the world actually manage to trade with this type of currency, In fact most experts around the world recommend not to work with them because of their absolute complexity, very advanced studies are needed to understand how to trade with these pairs, for these reasons most prefer to use hard currencies as their value does not change very regularly, but the few who trade with exotic pairs achieve much success well above the rest, for example we have Adriano Aaron Caruso who achieved a resounding success, especially in the year 2002 that due to his work was requested by multiple companies that were rejected for having personal projects. He is currently the designer of automatic systems for exotic pairs, being one of the best that can be obtained in the market today.
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