Exotic pairs are currency pairs that consist of one major currency and one currency from a developing or emerging economy.
In Forex trading, exotic pairs offer access to less commonly traded currencies. They typically include a major currency—such as the USD, EUR, or JPY—paired with a currency from a smaller or emerging-market economy like the Turkish Lira, South African Rand, or Thai Baht.
Exotic pairs usually feature low liquidity, wider spreads, higher volatility, and less predictable movements compared to major or minor pairs. Because of these characteristics, exotic pairs are often more expensive to trade and more sensitive to political and economic instability.
Common examples of exotic pairs include:
A trader speculates that the US Dollar will strengthen against the Turkish Lira and buys USD/TRY at 30.00. Due to volatility, the price quickly moves by 200 pips, creating both risk and opportunity.
Currency Pair, Major Currencies, Minor Pairs, Liquidity, Spread, Risk Management
Forex / Currency Classification
Exotic pairs can offer big moves—but they require precise timing and strict risk control. Always check spread and slippage before trading.
