Exotic Pairs
Currency pairs combining a major currency with an emerging market currency.
Full Definition
Exotic pairs combine a major currency (like USD, EUR, or GBP) with a currency from an emerging or smaller economy (like USD/TRY, EUR/ZAR, or GBP/MXN). These pairs typically have wider spreads, higher volatility, and lower liquidity. They can offer unique trading opportunities but require careful risk management due to increased costs and price swings.