USDMXN!

[FranziskaSchulz]

Hello everyone! I hope you all are doing well!
I’m aware that exotic currencies may carry more risk than major currency pairs and also spreads are not good. Can you tell me what are the advantages and disadvantages of trading exotic currencies? Can they be compared to the so-called “shitcoins” in the crypto market in terms of risk?
Also I spent some time on watching USDMXN and right now I am on a break from trading so I might give it a shot when I get back! it seems a really good one, could you please share your experiences with me?

 

[afarghaly9]

Hello FranziskaSchulz,

Trading exotic currencies can be dangerous considering that the volume and participation are relatively low which means they are much more easily manipulated by the countries central bank usually in favor of weakening the exotic currency against the US Dollar. This can expose you to massive losses and/or gains in a short period of time so it is advised to be wary when trading such currency pairs

Thanks
Ahmed

 

[Zerologic]

I once tried trading exotic pairs, not USDMXN but USDTRY, I did this because I saw that the Turkish Lira was very weak against USD. The first time I managed to make a big profit even though the spread was large, but the second trade experienced a big loss because the volatility was high. Since then I no longer trade that pair.