Exotic products transaction opportunities and threats

After the Major and Minor exchange rate groups, the exotic foreign exchange products in the third group are products that are not popular in the market and have low illiquidity and high markup. Exchange rates of countries such as the Argentine Peso, Brazilian Real, Egyptian Lira, Indonesian Rupee, South Korean Won, etc. are among the exotic products. However, exotic exchange rates may change with economic and geopolitical developments.

Most of the time, it trades at a fixed rate. In these countries, monitoring of macroeconomic variables and theoretical expectations may not be met and their estimation is very difficult. Investing in these currencies can lead to large losses and, on the other hand, can bring in large profits. Adding leverage to this can provide greater possibilities.

It is not recommended at all for novices to trade with this group of exchange rates… what do you think?

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