As most of you already know, there are eight major currencies in the Forex market.
If your trading style requires a longer-term approach to market analysis, it might be difficult to find profitable trading opportunities at times. So why not add exotic currencies to our analysis?
Exotic currencies are not as much traded as majors. As a result, their liquidity is low and volatility quite high. It’s not unusual for less-traded currencies to move hundreds and even thousands of pips in a matter of hours. In addition, you need to pay attention to political and economic risks of those currencies, which may change from day to day.
Ask your Forex trading coach whether trading exotic currencies fit into your trading style and how to manage the risks associated with trading them.