Hi everyone,
I have a question about exotic currencies in forex trading. I heard from a friend that they can be really profitable, but I’m also aware that they may carry more risk than major currency pairs. What are the advantages and disadvantages of trading exotic currencies? Can they be compared to the so-called “shitcoins” in the crypto market in terms of risk?
Hey there!
Exotic currencies can definitely be more profitable than major currency pairs, but they also come with more risk. A good point is that they can offer higher returns due to their volatility. However, one disadvantage is that they may have less liquidity and can be more difficult to trade.
In terms of comparing them to “shitcoins” in the crypto market, I would say that they are not exactly the same. While both may carry more risk, exotic currencies are still backed by established countries and their economies, whereas many “shitcoins” have little to no backing or regulation.
Hope that helps you!
Why diversify to try to make trading more exciting/ interesting.When there is enough already to learn ,simple usually best .
It would be better advice to get "obsessed"with 1 pair
If you are looking for an alternative, you could try trading indices and gold. Todays crazy markets are ideal for these.
Stick to the 28 pairs that most brokers or prop firms will allow you to trade. If you find a pair with a pattern that is attractive to you including your risk reward than the main risk you have would left would be the spread. If your comfortable beating the spread than you are good
This advice is no good. Having 1 or 2 types of price action setups you become a master of is not a bad idea when your starting out. But to only trade 1 or two pairs is a waste of your life and you will not be successful doing this
Yes life too short (I forgot about that )we should trade everything
i always like to trade on Major pairs but in demo using exotic pairs to see the performance how it works. this approach works really good.
Yes, exotic currencies give more return but they are risky a bit. Traders mostly trade major currency pairs but some traders trade those currencies at times depending on the market condition.
Thank you! Absolutely helpful.
Logical. What about Cryptos?
Awesome! Thanks.
Same. I have noticed that I am able to make good profits while trading exotic currency pairs on demo accounts, but I feel apprehensive about trading with real money. It seems a bit daunting to me.
To be honest, if the crypto uses the world’s energy in production of it, like Bitcoin - A single Bitcoin transaction uses an average of 1,173 Kilowatt Hours (kWh ) - I don’t consider it’s any value to the planet.
its okay , but the experience we take actually from demo accounts not works in a when trading in a real account. this is true fact.