What are Exotics? | Learn Forex in 60 Seconds

Exotics are a currency pair group that consist of a currency from an emerging economy or a currency from a small country with a small developing economy. Examples would include Euro Turkish Lira (EURTRY), US Dollar Turkish Lira (USDTRY), US Dollar Mexican Peso (USDMXN), US Dollar South African Rand (USDZAR), US Dollar Singapore Dollar (USDSGD). Compared to Crosses and Majors, Exotics are much riskier to trade because they are less liquid, more volatile, and more susceptible to manipulation. They also contain wider spreads, and are more sensitive to sudden shifts in political and financial developments.

Disclaimer: The content in this video comprises personal opinions and ideas and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear to you, please seek independent financial advice

1 Comment

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