They are are rarely discussed, but they shouldn't be considered least of all currencies. I never explore this area of forex until a couple of days ago when I was checking out all the available currencies my broker provides. They have quite a treasure. Anyway, the thing that I'm most impressed with is the pip range these currencies have. Some have 100 pips movement within an hour, regularly. Have a look yourself at the following minor currencies if you have access to them:
SGD, ZAR, TRY, PLN, NOK, SEK, DKK
Is there anyone here who trades minors as a side or exclusively? And successfully? I've read on some books that they are actually as tradeable as the majors and crosses. Common trading wisdom says we should avoid trading minors. I agree it's not for beginners, but I disagree if we should avoid trading them altogether.
I would appreciate the discussion on the pros and cons of trading the minors
General Pros:
SGD, ZAR, TRY, PLN, NOK, SEK, DKK
Is there anyone here who trades minors as a side or exclusively? And successfully? I've read on some books that they are actually as tradeable as the majors and crosses. Common trading wisdom says we should avoid trading minors. I agree it's not for beginners, but I disagree if we should avoid trading them altogether.
I would appreciate the discussion on the pros and cons of trading the minors
General Pros:
- Untapped market
- Often has higher volatility at certain times
- Maybe good for scalpers
General Cons:
- Gigantic spread
- Lower liquidity than majors but shouldn't be a problem if you trade small lots
- No specific news on FF about their currencies so they can send you spike anytime they want. But I guess they are still affected by the major currencies fundamental news
- Can be dead quite at times. The 5M chart simply shows ---------
