Exotic forex pair means the lucrative pair, then you are partly right due to the fact simply as they are lucrative, they are riskier too. Forex trading always involves risk, but how much to take depends on the trader.

In the forex market, there are various sorts of currency pairs (forex is traded in pairs). Some are the major ones that are easily traded while the minor ones may take time in getting executed.

Exotic currency pairs are quotations that consist of one major forex (USD, EUR, GBP, JPY, etc.) and one currency from a developing country (SEK, TRY, ZAR, HUF, MXN, etc.). Exotic forex pairs are less liquid than major forex pairs and normally more volatile than major fx pairs in the foreign exchange market. Examples of exotic forex pairs are USDSEK, USDNOK, EURSEK, EURNOK, GBPSEK, GBPNOK, USDMXN, EURMXN, USDZAR, EURZAR, etc.

Any pair that is not major or minor can be considered to be an exotic pair. When we refer to exotic pairs, it is more about how popular the pair is and not how much developed or advanced the country is. Also, being exotic doesn’t mean that the current is valued poorly and it doesn’t matter whether the currency pair is minor or major. In the end, how much volume is traded by the traders makes a current pair exotic.

The Major Forex Pairs

These forex pairs are highly liquid and capture 85 percent of the market share.

As stated above, it is very clear to be aware that the major forex pairs always have the American dollar on one side because it is a main currency. Whereas the minor forex pairs like EUR/GBP do now not have the US dollar.

The Minor Forex Pairs

Few of the minor forex pairs are famous as well and every now and then they are referred to as crosses, too. Some of the popular crosses consist of the Euro, British Pound, and Japanese Yen.

The Euro is also a very liquid and exotic currency and is the second most used currency after the US dollar. If we discuss about the Asian region, the Japanese Yen wins the crown. In addition to that, the British pound ranks fourth in terms of usability after the US dollar, Euro, and Yen.

The most liquid exotic pairs in the closing 10 years are USDSEK, USDNOK, USDMXN, GBPSEK, USDZAR, MXNJPY, GBPTRY. These numbers trade each day because of volume and volatility trade based on economic impact.

The Best Exotic Forex Pairs

Though the great part about exotic pairs is that you can effortlessly predict them and discover terrific opportunities regardless of being major or minor.

Best exotic forex pairs are the fx pairs that have robust bullish or bearish trend potential in the modern trading period. If traders see clear trend direction and increased volatility, there are opportuniti for trend following system for that exotic forex pair.