BEST EXOTIC FOREX PAIRS TO TRADE

When you go check on the best exotic forex pairs to trade on the internet; you will find a lot of information surrounding this topic, however, there is more to this than just listing a few exotic pairs to trade.

In my experience, I have come to see that any exotic forex pairs can be the best to trade with provided that you understand the basic principles of how the forex market works.

When you constantly make money on a certain forex pair, it certainly becomes your best trading pair.

That being said I will certainly list a few exotic pairs I have traded, with market structure understanding and I will encourage you to put this market analysis into consideration when trading these exotic forex pairs.

WHAT ARE EXOTIC CURRENCY PAIRS?

Exotic currency pairs consist of a major currency pair is the base currency and a strong smaller emerging economy which currency will be the quote in the pair example is the USD/MXN.

These pairs come with a much larger spread than the major currency pairs because they lack liquidity due to the fact that they are not traded as often as the major currency pairs.

Exotic pairs are characterized by high volatility and trading with proper market analysis can give you a huge return in profit because of the nature of both economies.

RELATED: CURRENCY PAIRS THAT MOVE TOGETHER

BEST EXOTIC FOREX PAIRS TO TRADE

There are many exotic pairs to trade in the forex market; in my years of trading, this is my choice in the most successful exotic forex pairs to trade.

1. USD/ZAR
2. USD/MXN
3. USD/PLN
4. USD/NOK
5. USD/TRY
6. USD/RUB

RELATED: HOW TO TRADE GBP JPY SUCCESSFULLY

RELATED: BEST TIME TO TRADE NZDUSD

EXOTIC FOREX PAIRS LIST TO TRADE

This is a list of a few exotic forex pairs list and their countries;

Pairs	Countries
USD/ZAR	US Dollar/South African Rand
GPB/DKK	British Pounds/Danish Krone
USD/SGD	US Dollar/Singapore Dollar
USD/DKK	US Dollar/Danish krone
USD/SEK	US Dollar/ Swedish krona
USD/TRY	US Dollar/ Turkish Lira
USD/NOK	US Dollar/Norwegian krone
USD/MXN	US Dollar/Mexican Peso
USD/HKD	US Dollar/Hong Kong Dollar
EUR/TRY	EURO/Turkish Lira
USD/PLN	US Dollar/ Polish zloty
USD/CNH	US Dollar/Chinese Yuan

RELATED: BEST PAIRS TO TRADE DURING TOKYO SESSION

MOST LIQUID CURRENCY PAIRS

I am going to list the most liquid currency pairs in terms of market volume, before I do that let us first define what forex market liquidity is.

Forex market liquidity refers to an asset’s ability to be sold quickly and at the best possible price.

Liquidity in the forex market also means the most traded currency pairs

In terms of market volume, these are the most liquid currency pairs;

1. EUR/USD
2. GPB/USD
3. NZD/USD
4. USD/CAD
5. USD/JPY
6. USD/CHF
7. AUD/USD
8. AUD/JPY

According to the most traded currencies website, these are the top 25 most traded currencies with their shares of daily turnover.

Rank	Currency	Share of turnover (%)*
1	US dollar	87.62
2	European Euro	31.27
3	Japanese yen	21.56
4	Pound sterling	12.78
5	Australian dollar	6.94
6	Canadian dollar	5.13
7	Swiss franc	4.78
8	Chinese Yuan Renminbi	3.97
9	Swedish krona	2.22
10	Mexican peso	2.20
11	New Zealand dollar	2.06
12	Singapore dollar	1.79
13	Hong Kong dollar	1.73
14	Norwegian krone	1.67
15	South Korean won	1.65
16	Turkish lira	1.40
17	Indian rupee	1.14
18	Russian ruble	1.14
19	Brazilian real	1.00
20	South African rand	1.00
21	Danish krone	0.83
22	Polish Zloty	0.69
23	New Taiwan dollar	0.63
24	Thai baht	0.43
25	Malaysian Ringgit	0.41

Rank	Currency	Average turnover (Billion US$)
1	US dollar	4 458
2	European Euro	1 591
3	Japanese yen	1 097
4	Pound sterling	650
5	Australian dollar	353
6	Canadian dollar	261
7	Swiss franc	243
8	Chinese Yuan Renminbi	202
9	Swedish krona	113
10	Mexican peso	112
11	New Zealand dollar	105
12	Singapore dollar	91
13	Hong Kong dollar	88
14	Norwegian krone	85
15	South Korean won	84
16	Turkish lira	71
17	Indian rupee	58
18	Russian ruble	58
19	Brazilian real	51
20	South African rand	51
21	Danish krone	42
22	Polish zloty	35
23	New Taiwan dollar	32
24	Thai baht	22
25	Malaysian Ringgit	20

Rank	Currency	ISO 4217 code
1	US dollar	USD
2	European Euro	EUR
3	Japanese yen	JPY
4	Pound sterling	GBP
5	Australian dollar	AUD
6	Canadian dollar	CAD
7	Swiss franc	CHF
8	Chinese Yuan Renminbi	CNY
9	Swedish krona	SEK
10	Mexican peso	MXN
11	New Zealand dollar	NZD
12	Singapore dollar	SGD
13	Hong Kong dollar	HKD
14	Norwegian krone	NOK
15	South Korean won	KRW
16	Turkish lira	TRY
17	Indian rupee	INR
18	Russian ruble	RUB
19	Brazilian real	BRL
20	South African rand	ZAR
21	Danish krone	DKK
22	Polish zloty	PLN
23	New Taiwan dollar	TWD
24	Thai baht	THB
25	Malaysian Ringgit	MYR

Rank	Currency	Country or territory
1	US dollar	United States
2	European Euro	19 states of the EU
3	Japanese yen	Japan
4	Pound sterling	United Kingdom
5	Australian dollar	Australia
6	Canadian dollar	Canada
7	Swiss franc	Switzerland
8	Chinese Yuan Renminbi	China
9	Swedish krona	Sweden
10	Mexican peso	Mexico
11	New Zealand dollar	New Zealand
12	Singapore dollar	Singapore
13	Hong Kong dollar	Hong Kong (China)
14	Norwegian krone	Norway
15	South Korean won	South Korea
16	Turkish lira	Turkey
17	Indian rupee	India
18	Russian ruble	Russia
19	Brazilian real	Brazil
20	South African rand	South Africa
21	Danish krone	Denmark
22	Polish zloty	Poland
23	New Taiwan dollar	Taiwan
24	Thai baht	Thailand
25	Malaysian Ringgit	Malaysia

The most liquid currency pairs in January 2020 are depicted in an image pie chart below. Understand that the data is constantly changing due to the market situation at any given time.

MAJOR CURRENCY EXOTIC PAIRS TO TRADE

Major currency pairs are called major forex pairs for many reasons; one of these reasons is because they are paired with the US dollar and they are the most traded currency pairs in the forex market.

For example, the EUR/USD records a high trade volume amongst other currency pairs in the forex market.

Below are a few major currency pairs

EUR/USD

GPB/USD

USD/CAD

NZD/USD

USD/JPY

AUD/USD

USD/CHF

MINOR CURRENCY PAIRS

Minor currency pairs are also called cross-currencies. For a clearer definition Cross-currency pairs, or simply “crosses,” are currency pairs that do not include the US dollar. An example of this minor/cross-currency pair is the CAD/JPY.

BEST MINOR CURRENCY PAIRS

In my years of technical analysis trading, I have known that the Japanese Yen pair currency is the best minor currency pair to trade and this is why.

The currencies paired with the JPY mostly operate on a different economic model.

Because of the different countries’ economic models, they make a perfect match when paired together, also in terms of their trading sessions. For example when one country’s session opens, the other is closed.

Examples of these best minor pairs are:

1. GBP/JPY
2. AUD/JPY
3. NZD/JPY
4. EUR/JPY

MOST VOLATILE EXOTIC CURRENCY PAIRS

All the exotic currency pairs are volatile, however, the most volatile exotic currency pairs are

1. USD/ZAR
2. USD/PLN
3. USD/MXN
4. USD/NOK
5. USD/TRY