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Currency Trader (200708)
This article discusses emerging market or "exotic" currencies that some retail forex brokerages have started offering, beyond the major currency pairs. Exotic currencies provide traders opportunities to profit from trends in less liquid currencies and speculate on smaller economies. However, exotic currencies are riskier due to higher volatility, lower liquidity, and wider spreads. Only experienced retail traders should consider trading exotics, which require an understanding of the greater risks involved. While diversification is a benefit, traders must be prepared to deal with more violent price fluctuations than in major currency pairs.
