Any RAND traders here? The large spread and highest interest rates make this one volatile currency to trade. Tight stops don’t help as most of the times, they will be licked.
Directionaly trades do work but they require balls of steel and ice, patience and deep pockets.
As of now, based on Turkey coup news, EURZAR broke through 16.00 level and closed above for the last week. Question for next week is whether that break was a fluke or is this a start of a new upleg?
I personally am in favor of a drop to 15.00 level before resumption of a long leg that will take the pair to 18.00 or so.
Being South African I look at the ZAR pairs allot but never had the desire to traded them because of the high spreads. I agree with the previous post that there are others with lower spreads and enough volitlity.
I watch the “minor” pairs too, I thought it was maybe just me. I am a long-term trend-follower and quite often the minors trend for ages compared to say the EUR/USD. e.g. I am looking to short a GBP pair, including GBP/ZAR whichever gives a signal first. But the risk in % can be enormously expensive - had to abandon USD/MXN as a target for this reason, I could never afford the risk, even on minimum stake.
I trade exotic currency pairs with Hotforex, including ZAR, but my strategy is based only on USDZAR shorts and I place trades rarely when I see extreme risk-off bias which is often irrational. With high degree of probability you can say that high interest rate will sooner or later attract carry traders when the dust settles.
I think you can consider cryptocurrency. Now it is a divergence but also a bigger opportunity. The possible price in the future will exceed our imagination.