What is Exotic Pairs?
Updated October 20, 2026
Exotic pairs combine a major currency with one from a smaller or emerging economy.
Examples are USDTRY, USDZAR and USDMXN.
They can make huge moves but come with wide spreads and big swaps.
Most beginners and bots are better off skipping them.
Example
USDZAR might have a spread of 100 pips, compared to 1 on EURUSD.
Questions people ask
Why are exotics expensive?
Low liquidity means brokers charge more to trade them.
Can they gap?
Yes, political news can cause sudden jumps.
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