Is it common for the yuan to be unavailable on certain retail forex trading platforms?
well. i’ll put it this way
I’ve never heard of Yuan and I’ve been trading for 7 years, so in my opinion i think it is common for it to be UNAVAILABLE, but, I’ve been proven wrong in the past
i would say , get a few opinions from different people of different skill levels in different countries and compare the results.
I’m in Australia , i’ve never heard of it
Hope that helps
Do you already have a broker? If not, a quick Google search resulted in a nice long list of brokers supporting USD/CNH. It’s an exotic, so it would make sense that some brokers don’t offer it.
Maybe ask over in the Forex Brokers section.
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Usd/Cnh is the off-shore Yuan, based on the (central-bank-regulated) Usd/Cny or on-shore Yuan.
Fxcm offer Usd/Cnh…
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Oanda, the second-largest retail broker in the U.S., offers USD/CNH as one of the pairs in their menu.
CNH, by the way, is the Chinese yuan traded in Hong Kong.
CNY is the Chinese yuan traded in China
The yuan is also known as the renminbi. Yuan is easier to pronounce.
As forexforexforex pointed out, it’s an exotic, so it’s quite different from any of the majors, or the major crosses.
The current price level is about USD/CNH = 6.4000.
Price moves can be extremely large, compared to non-exotics – the chart below shows a price move of more than 2,000 pips over the past 28 trading days. Obviously, stop-losses have to be very wide, especially for swing-traders and position traders.
But, pip-values are tiny (currently $1.55 per pip per standard lot), offsetting the otherwise scary stop-losses.
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That’s nothing…
USDMXN dropped about 15000 (yes, FIFTEEN THOUSAND) pips in three trading weeks.
Of course its pip value is small, e.g. for a £1/pip transaction you would currently need a £264000 position,
but if you can afford the leverage (and the wider stop) then the moves can be better than in UsdCnh.
That is just one example of one exotic against another…
Then you have swap… If you compare interest on selling UsdCnh versus UsdMxn, for example, you would
be better off holding an overnight short with the latter, given that the PBoC has an interest rate of 4.3, whereas
the Bank of Mexico has one of 7.25, so selling Usd against the Mexican Peso will yield a greater accrued interest
over time compared to selling Usd against the off-shore Yuan.
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