The forex market is absolutely packed with just a few currencies. The pound, the US dollar, the euro, the yen, and the yuan. These make up almost the entirety of the market, along with a few others. What’s more, almost all major currencies come from the western world. There is no reason for a trader to limit themselves so much. Sure, these may be easy to follow, with news about them everywhere. However, these are also places where almost everyone is trading. Exotic currencies, from emerging markets, have plenty to offer as well, one just has to look. Here, we shall have a discussion on exotic currencies and some examples of them.
Why exotic currencies?
Exotic currencies are all around us, and economies around the world are building up. This presents all traders with plenty of opportunity.
Part of the reason traders do not look at these currencies is volatility. Many of these currencies are rising, and with this push, they may also fail. This could result in a sudden drop in currency valuation. However, they are also growing faster relative to already rich countries. This means that those that are doing well offer opportunities for their investors. Opportunities to really, properly profit.
So, a trader interested in these sorts of currencies has plenty of opportunity. However, they should also have the right mindset. If they make some losses, they should be prepared and not too surprised.
Some example currency pairs
The US dollar is the main universal currency. Most traders, thus trade against it. Here are some examples of its pairs.
USD/MXN (US Dollar/Mexican Peso)
USD/SGD (US Dollar/Singapore Dollar)
USD/HKD (US Dollar/Hong Kong Dollar)
USD/SEK (US Dollar/Swedish Krona)
USD/ZAR (US Dollar/South African Rand)
The final pair we would like to recommend involved the euro.
EUR/TRY (Euro/Turkish Lira)
Hope you enjoyed our discussion so far! Join us next time to find out more.