Hi everyone. Is it worth trading them?
Yes, trading exotic pairs are more profitable but for that you need experience. Then only you can analysis them and profit.
Why not, on demo for sure! Just keep an eye on spreads.
Why do you think this?
I often find I can’t afford to trade exotics on the long-term. I regularly set a stop-loss at 2 x ATR20 from entry on the daily charts but often find this means I must allocate far more of my account to the trade than I wish to risk.Plus the margin requirements are very deep so lining up exotics trades means I can take fewer trades that had better probability anyway…
I can agree experience is a plus to have when trading exotic pairs. Does anyone have any recommendations on risk management strategies? I’ve found that swaps are also fairly high for exotics that can put off some traders.
exotic pairs with wider atr(average daily range) have also a really nice spread(difference between bid and ask). take try or turkish lira, that moves like crazy, but has quite a big spread, therefore u need a sizeble account and wide stops or not at all imo. as soon as u start the trade, u r in minus, and if u r wrong about the direction… u can figure out what and how…now, if 1 knows what he. she is doing, and has a plan on the risk vs reward, main direction, how far can price run till next support, resistance in respect to ur stop etc, then it s quite lucrative, but again, a sizeble account , atleast imo. stay green
Because the movement of those pairs are high in range and that can earn you good amount of profit but your analysis should be accurate for this.
Being volatile and therefore having big movements doesn’t make them more profitable, if anything it makes it more likely you will lose money especially when you take the wide spreads into account
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I think you should try know what exotic pairs, how they move and what moves them. Also study their volatility. This will help you determine whether they are worth it or not. Everyone knows what they want.
Will do! I guess these pairs are really for experienced because trading them takes some super advanced trading skills!
Thank you everyone!
In my opinion, if you don’t know what you are doing you really shouldn’t trade them.
if you’re doing swing or position for long term, by all means carry on.
scalp or intra day is a nono.
Always first learning and then implementing it with real account. If you think that you can do it then try with demo and learn it.