Exotic pairs, Brazil Reais/US dollars? | Forex Factory

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Exotic pairs, Brazil Reais/US dollars?

  • #1
  • First Post: Nov 11, 2007 2:32pm Nov 11, 2007 2:32pm
Does anybody trade Brazil Reais against US or vice versa?

I've read and heard that the Brazilian economy is doing well and that some of their stock equities are doing well.

Is this a bad or a good idea to trade some exotics? What are the risks? Would the spreads be too wide, etc?

I'm asking because a friend is thinking of moving there and he has established Brazilian friends there to assist him in the country.

There's a big world out there.

Thanks for the feedback.
  • #2
  • Nov 14, 2007 7:29am Nov 14, 2007 7:29am
Quoting garyhope
Does anybody trade Brazil Reais against US or vice versa?

I've read and heard that the Brazilian economy is doing well and that some of their stock equities are doing well.

Is this a bad or a good idea to trade some exotics? What are the risks? Would the spreads be too wide, etc?

I'm asking because a friend is thinking of moving there and he has established Brazilian friends there to assist him in the country.

There's a big world out there.

Thanks for the feedback.

Moving to Brazil wouldn't make any difference nor give your friend any advantage to trading exotics, since Forex can be traded from anywhere.

The problem with exotics is that there may not be enough volume. That means that the spreads will be much wider than other pairs and it may be difficult to get out of a trade if things move against you.

You may also find that you're limited to certain brokers, as not all brokers trade all pairs.

Terry
  • #3
  • Nov 15, 2007 6:36am Nov 15, 2007 6:36am
Thanks for the reply IN2Blues.

He wasn't thinking about trading from Brazil but of transfering some of his money to Brazil thinking he would make money on the deal because he'll get more for his dollars there. Perhaps he's confused.

What part of the UK are you in? I've been to Manchester a lot. Wales and Ireland a lot too.

Go Man United!! The big Red.
  • #4
  • Nov 15, 2007 10:58am Nov 15, 2007 10:58am
yeah.. spread will be wide as it is not liquid. but going long on the real could earn a nice carry interest.. I am not sure but the rates were 11.25% last time I checked.
  • #5
  • Last Post: Nov 17, 2007 12:04pm Nov 17, 2007 12:04pm
Quoting garyhope
What part of the UK are you in? I've been to Manchester a lot. Wales and Ireland a lot too.
Actually, I'm in Canada. Never been to the U.K., but it's on my list of things to do.

Terry
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