![]() So if you want to trade exotics currency pairs, remember to factor this into your decision.įor those of y’all who are really mesmerized by exotics, here’s a more comprehensive list. It’s not unusual to see spreads that are two or three times bigger than that of EUR/USD or USD/JPY.ĭue to the overall lower degree of liquidity, exotic currency pairs tend to be far more sensitive to economic and geopolitical events.įor example, a political scandal or unexpected election results can cause an exotic pair’s exchange rate to swing violently. 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. Wanna take a shot at guessing what those other currency symbols stand for?ĭepending on your forex broker, you may see the following exotic currency pairs so it’s good to know what they are. The chart below contains a few examples of exotic currency pairs. No, exotic pairs are not exotic belly dancers who happen to be twins.Īn exotic currency is a currency from countries with developing or emerging markets.Įxotic currency pairs are made up of one major currency paired with the currency of an emerging economy, such as Brazil, Mexico, Chile, Turkey, or Hungary.īasically, an exotic currency pair includes one major currency alongside an exotic currency. The most actively traded crosses are derived from the three major non-USD currencies: EUR, JPY, and GBP. Liquidity is used to describe the level of activity in the financial market. The majors are the most liquid in the world. While there are EIGHT major currencies, there are only SEVEN major currency pairs.Ĭompared to the crosses and exotics, the price moves more frequently with the majors, which provides more trading opportunities. dollar ( USD) on one side and are the most frequently traded. The currency pairs listed below are considered the “ majors.” Crosses that involve any of the major currencies are also known as ” minors”.Įxotic currency pairs consist of one major currency and one currency from an emerging market (EM). dollar.Ĭross-currency pairs do NOT include the U.S. The major currency pairs always include the U.S. There are three categories of currency pairs: Imagine each currency pair constantly in a “tug of war” with each currency on its own side of the rope.Īn exchange rate is the relative price of two currencies from two different countries.Įxchange rates fluctuate based on which currency is stronger at the moment. ![]() BoE Hike Interest Rates, Pound Canadian Dollar Rate Slips to 1.When you trade in the forex market, you buy or sell in currency pairs.Pound Sterling to Canadian Dollar Rate Forecast: GBP Trends Higher Against CAD into New Week Pound (GBP) Exchange Rates Firm as BoE Commits to Taming Inflation.Oil Prices Rally Further, Pound to Canadian Dollar Rates RangeboundCanadian Dollar (CAD) Exchange Rates Stumble amid Profit-Taking.GBP/CAD Outlook: Pound Canadian Dollar Rate Pares Gains as UK Grocery Inflation RocketsGBP/CAD Exchange Rate Ticks Lower as Sterling Morale Weakens. ![]()
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