Back to Glossary
Exotic Currency Pairs
Forex Basicsintermediate
Updated 1/15/2024
Definition
Exotic currency pairs include one major currency and one currency from an emerging or smaller economy. Examples include USD/TRY, EUR/TRY, USD/ZAR. They have lower liquidity and wider spreads.
Example
USD/TRY (US Dollar/Turkish Lira) is an exotic pair. It might have spreads of 10-50 pips due to lower liquidity and higher volatility.
Tags
#basics#pairs#emerging-markets
Related Terms
Major Currency Pairs
ForexMajor currency pairs are the most traded pairs in the forex market, all involving the US Dollar. The...
Minor Currency Pairs
ForexMinor currency pairs (also called cross-currency pairs) are pairs that don't include the US Dollar. ...
Volatility
ForexVolatility measures how much a currency pair's price fluctuates over time. High volatility means lar...
Browse All Terms
15 of 66 terms