Trading Knowledge - Exotic Currency Pairs Explained: Forex Trading for Beginners

In this video, we’ll be explaining exotic currency pairs, which are less commonly traded but offer unique trading opportunities because of their wider spreads and higher volatility. Because of this, it’s also critical to understand risk management when exploring these pairs.

Exotic currency pairs involve one major currency and one currency from a smaller or emerging market economy. These pairs are less liquid and more volatile, often resulting in wider spreads.