Community Forex Questions
Disadvantages of exotic pairs
When exotic cross currency pairs are used, the risk is increased because these currencies have a large spread, requiring a trader to deposit more money in order to make some marginal profits. Many exotic currency economies are not very stable, as any political deviation can affect everything in the market. There are numerous powers jostling among nations that have exotic currencies; these power struggles can be very damaging to trading because they can cause economies to nearly collapse.

Add Comment

Add your comment