What are the exotic currency pairs?
Exotic currency pairs include currencies of emerging markets. These pairs are not as liquid, and the spreads are much wider. An example of an exotic currency pair is the USD/SGD (U.S. dollar/Singapore dollar). Bank for International Settlements.
An exotic currency is a foreign exchange term for a thinly traded currency. Exotic currencies are illiquid, lack market depth, can be extremely volatile, and trade at low volumes. Trading an exotic currency can be expensive, as the bid-ask spread is usually large to compensate for the lack of liquidity.
- EUR/USD (Euro/US Dollar)
- USD/JPY (US Dollar/Japanese Yen)
- GBP/USD (British Pound/US Dollar)
- USD/CHF (US Dollar/Swiss Franc)
- USD/CAD (US Dollar/Canadian Dollar)
- AUD/USD (Australian Dollar/US Dollar)
- NZD/USD (New Zealand Dollar/US Dollar) EUR Pairs.
- EUR/JPY (Euro/Japanese Yen)
The U.S. dollar (USD) The euro (EUR) The Canadian dollar (CAD) The British pound sterling (GBP)
| Currency | Symbol | INR Value In Rs (As on April 2024) |
|---|---|---|
| Kuwaiti Dinar | 1 KWD | 270.51 |
| Bahraini Dinar | 1 BHD | 221.09 |
| Omani Rial | 1 OMR | 216.47 |
| Jordanian Dinar | 1 JOD | 117.58 |
Pros and Cons of Trading Forex Exotic Currency Pairs
All things being equal, a market with higher liquidity is more open to a trader than a less liquid one. Specific circ*mstances may make exotics pairs an attractive proposition though. They may offer exposures that you can't get elsewhere, or quite in the same way.
- USD/ZAR - Volatility: 12.9% ...
- AUD/USD - Volatility: 9.6% ...
- NZD/USD - Volatility: 9.5% ...
- USD/MXN - Volatility: 9.2% ...
- GBP/USD - Volatility: 7.7% ...
- USD/JPY - Volatility: 7.6% ...
- USD/CHF - Volatility: 6.7% ...
- EUR/USD - Volatility: 6.6%
The “major” currency pairs are some of the most common currency combinations in the Forex market. Although there is no definitive list of what the major pairs are, they are understood within the forex trading industry to be EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, and AUD/USD.
The EUR/USD pair holds the throne as the most traded forex pair globally, known for its liquidity and stability. Traders often turn to this pair for its reliability and consistent profit opportunities.
- EUR/USD (Euro/US dollar)
- USD/JPY (US dollar/Japanese yen)
- GBP/USD (British pound/US dollar)
- AUD/USD (Australian dollar/US dollar)
- USD/CHF (US dollar/Swiss franc)
- USD/CAD (US dollar/Canadian dollar)
What is the most heavily traded currency pair?
EUR/USD “The Fiber” is a combination of the Euro and the US dollar. This is generally considered the most traded currency pair as it stems from two of the world's largest and most reputable economies.
- EUR/USD and GBP/USD.
- EUR/USD and AUD/USD.
- EUR/USD and NZD/USD.
- USD/CHF and USD/JPY.
- AUD/USD and NZD/USD.
Top G10 currency pairs to trade on the forex market
Due to their popularity, most major forex pairs consist of G10 currencies – examples include AUD/USD, EUR/USD, GBP/EUR, GBP/USD, USD/CAD, USD/CHF and USD/JPY.
Trading only one currency pair allows the trader to concentrate all time and effort in one place, so there is less distraction. If you are using for example a low time frame scalping method, trading only one currency pair allows you to focus well.
What Is the Weakest Currency in the World? The weakest currency in the world is the Iranian rial (IRR). The USD to IRR operational rate of exchange is 371,992, meaning that one U.S. dollar equals 371,922 Iranian rials.
- Top 10 Highest & Strongest Currencies In The World and Their Value.
- Kuwaiti Dinar.
- Bahraini Dinar.
- Omani Rial.
- Jordanian Dinar.
- Gibraltar Pound.
- British Pound.
- Cayman Island Dollar.
Iranian Rial (IRR)
Currently, the Iranian Rial is considered the world's least valuable currency. This is the result of factors like political unrest in the country.
Japan continues to be a popular choice, but Vietnam and South Korea stand as solid alternatives among numerous countries in Asia with favourable exchange rates for the US dollar. Closely following in value are South American countries: Argentina and Chile are among those offering the biggest luxury bang.
Some of the countries where a dollar is worth the most money include Mexico, Peru, Chile, and Colombia. It's possible to exchange dollars for local currency in these countries at favorable exchange rates.
Kuwaiti Dinar (KWD)
The Kuwaiti dinar is the strongest currency in the world, with 1 dinar buying 3.26 dollars (or, put another way, $1 equals 0.31 Kuwaiti dinar). Kuwait is located on the Persian Gulf between Saudi Arabia and Iraq, and the country earns much of its wealth as a leading global exporter of oil.
What is the safest currency pairs to trade?
- USD/JPY. ...
- USD/CAD. ...
- AUD/USD. ...
- USD/CNY. ...
- USD/CHF. ...
- GBP/JPY. ...
- EUR/CHF. Though EUR/CHF (Euro/Swiss Franc) is not a major currency pair, it is popular among traders, particularly due to its inverse relationship with EUR/USD. ...
- NZD/USD. NZD/USD ("Kiwi") is a popular minor currency pair.
Exotic pairs
These present some of the highest volatility readings and include pairs like USD/TRY, USD/MXN, and EUR/RUB. Exotic currency pairs will generally see higher volatility, while major currency pairs tend to be less volatile.
Beginners often trade the USD/JPY currency pair. This pair has a tendency to move in large, slow-moving trends, which makes it easier to identify entry and exit points.
The fastest-moving currency pairs include the currencies of the most developed countries as base or quote currencies, as they represent the most economic activity. They are the USD, EUR, JPY, GBP, CHF, CAD, and AUD.
AUD/USD turned out to be the least volatile currency pair.
As for the cross rates, GBP/NZD, GBP/AUD, GBP/CAD, and GBP/JPY are the most fluctuating currency pairs. All of them move on average for more than 100 points per day. CAD/CHF, EUR/CHF, AUD/CHF, and CHF/JPY are the less volatile Forex pairs among the cross rates.
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