Reply To: Discuss Forex Day Trading For Beginners

James Barra
Moderator Team

    Hi Thorian,

    Thanks for your message.

    Exotics can be suitable for day trading but there are some key considerations to weigh up:

    • Exotics tend to exhibit higher volatility than majors, providing opportunities to profit from significant price movements over a short period.
    • Exotics tend to have lower liquidity than majors which may result in slippage (the difference between the requested and actual price).
    • Exotics tend to have wider spreads and higher trading costs than majors which can impact the profitability of short-term trading strategies.
    • Like day trading any currency pair, risk management is essential.

    Among the most popular and traded exotic currency pairs are:

    • USD/ZAR (US Dollar/South African Rand)
    • USD/SGD (US Dollar/Singapore Dollar)
    • USD/INR (US Dollar/Indian Rupee)
    • USD/HKD (US Dollar/Hong Kong Dollar)
    • EUR/TRY (Euro/Turkish Lira)