What is Exotic Pairs?

Currency pairs that consist of one major currency and one from a developing or emerging economy.

In-Depth Explanation

Exotics have lower liquidity and much wider spreads than majors or minors. Examples include USD/TRY (Turkish Lira) or USD/ZAR (South African Rand).

"Trading USD/MXN is considered trading an exotic pair and requires higher margin."

Knowing the terms is just the start. Learning how to apply them is where the edge is found.