Exotics are currency pair groups that involve either a currency from an emerging economy either a currency from a small country with a small developing economy. Examples would include US Dollar Mexican Peso (USDMXN), US Dollar South African Rand (USDZAR), US Dollar Singapore Dollar (USDSGD), Euro Turkish Lira (EURTRY), US Dollar Turkish Lira (USDTRY). Compared to Majors and Crosses, Exotics are far riskier to trade due to the fact that they are less liquid, more volatile, and more susceptible to manipulation. They contain wider spreads, and are more sensitive to unexpected shifts in political and financial developments.

More on Beginner's Education