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.

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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

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