Skip to main content
NextTrade

Basics

Exotic pairs

Exotic pairs combine a major currency with the currency of a smaller or emerging economy, such as USD/MXN or USD/ZAR. They usually trade in lower volumes, so spreads tend to be wider and prices can move more sharply.

Also called: exotics, emerging-market pairs

Hypothetical example

Hypothetically, USD/MXN moves from 20.00 to 20.40 in one day, a 2% change. On a major pair, a move of that size in one day would be unusual.

Related terms

Used in these guides

Back to the glossary