Does anyone have any experience trading exotic pairs? | Forex Factory

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Does anyone have any experience trading exotic pairs?

  • #1
  • First Post: May 18, 2008 3:02pm May 18, 2008 3:02pm
My broker (Alpari) now offers now also some more exotic pairs like USDDKK, NOK, SEK or USDSGD, USDHKD and other more unusual crosses like EURAUD, NZDGBP, AUDCHF and a few more that probably dont need mentioning here.

I was thinking about trading them and seek input from anyone experienced trading such pairs as I could imagine that they come with some pitfalls e.g. low liquidity etc.

Would appreciate if you could share your knowledge/experiences on that subject.

MP
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  • #2
  • May 18, 2008 3:40pm May 18, 2008 3:40pm
Humm...low liquidity could be a problem, but I think the biggest problem would still be the (very) large spread for some of those pairs

I see a 50 pip spread on USDNOK, USDSEK and 30 pip spread on USDDKK...ouch!

Probably best would be to approach these on mini or micro lots first and see how much success you get with that first.
  • #3
  • May 18, 2008 3:50pm May 18, 2008 3:50pm
what are the spreads? saxobank seems pretty good for the exotics if you can afford the 10,000 usd acct requirement
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  • #4
  • May 18, 2008 3:52pm May 18, 2008 3:52pm
You just have to do a pair study on each. Pay close attention to their base pairs tho, example: The EURAUD will be heavily dependent on the AUDUSD.
  • #5
  • May 18, 2008 3:52pm May 18, 2008 3:52pm
Quoting tenantro
Humm...low liquidity could be a problem, but I think the biggest problem would still be the (very) large spread for some of those pairs

I see a 50 pip spread on USDNOK, USDSEK and 30 pip spread on USDDKK...ouch!

Probably best would be to approach these on mini or micro lots first and see how much success you get with that first.

Yeah, that spread is a bit of a handful on those pairs, will probably stay away from those anyways but the spreads on other pairs are more humane. Thanks for your input.
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  • #6
  • May 18, 2008 3:54pm May 18, 2008 3:54pm
Quoting Rabid
You just have to do a pair study on each. Pay close attention to their base pairs tho, example: The EURAUD will be heavily dependent on the AUDUSD.
Good tip, got it on board, thanks for that !
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  • #7
  • May 18, 2008 3:59pm May 18, 2008 3:59pm
Quoting Dirtybrown
what are the spreads? saxobank seems pretty good for the exotics if you can afford the 10,000 usd acct requirement
It's probably gonna boil down to me micro trading them on Alpari first, with the more decently spreaded pairs.
I'm just turning to those pairs in the hope to catch more quality signals, but then again they are probably quite dependent on their base pairs as Rabid pointed out.
Yet to be seen if its such a great idea.
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  • #8
  • May 19, 2008 9:13am May 19, 2008 9:13am
trade on exotic pairs is so risky becareful
  • #9
  • May 19, 2008 10:54am May 19, 2008 10:54am
Hello Mary Poppins,

I like exotic pairs, sometimes the best opportunities show themselves through these pairs.

I will only speak about USD/HKD, as it is the only pair outside of USD/SGD that you mentioned that I have experience trading. This thread: http://www.forexfactory.com/showthread.php?t=52608 discusses from start to finish a trade I took on the USD/HKD. Given the circumstances, this currency will present a good trade or two over the course of a year. The drop in mid March was a good trade to take.

The gist of things is that the pair is set to bounds 7.75 - 7.85. If a move occurs that gets too close to the bounds ... the Risk/Reward ratio can be 75 SL to 300+ TP. Look how the pair acted in October of last year.
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  • #10
  • May 20, 2008 2:33am May 20, 2008 2:33am
Quoting MRmojtaba
trade on exotic pairs is so risky becareful
Ok! Why?
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  • #11
  • Last Post: May 20, 2008 3:08am May 20, 2008 3:08am
Quoting StockKJay
Hello Mary Poppins,

I like exotic pairs, sometimes the best opportunities show themselves through these pairs.

I will only speak about USD/HKD, as it is the only pair outside of USD/SGD that you mentioned that I have experience trading. This thread: http://www.forexfactory.com/showthread.php?t=52608 discusses from start to finish a trade I took on the USD/HKD. Given the circumstances, this currency will present a good trade or two over the course of a year. The drop in mid March was a good trade to take.

The gist of things is that the pair is set to bounds 7.75 - 7.85. If a move occurs that gets too close to the bounds ... the Risk/Reward ratio can be 75 SL to 300+ TP. Look how the pair acted in October of last year.

Great stuff, it's just like you said e.g the last 2 months were really a pain to stay in an interest negative scenario. Will be watching this pair for an extraordinarily good short set-up or a solid long long-term opportunity.

Thanks for sharing StockKJay !
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