Jump to content

Exchange Blog Cryptocurrency Blog


All Pips



Why you should not trade unpopular pairs


euro

Recommended Posts

I think we should stick with the safe haven pairs like euro or yen or usd since the unpopular ones have high spread so that is the bug right there already. I mean if you're scalping you can't make that much with  high spread since you will be waiting for 3 or more pips in order to gain like some pips and it takes forever so better stick with low spread pairs like euro or usd or yen rather than others. I can't stand high spread and its way too hard to earn in scalping. 

  • Downvote 9
Link to comment
Share on other sites

  • 1 month later...
  • 3 weeks later...

Unpopular pairs have higher spreads, and i think it is better for me to stick with the major pairs right now, since i am making profit right now with those pairs, not with that exotic pairs. Honestly exotic pairs is harder to handle rather than popular and major pairs.

Link to comment
Share on other sites

  • 1 month later...

The unpopular or even the exotic pairs are quite difficult to understand for me. I would rather go for the popular pairs and stand a chance to take advantage of the movement. I think that whomever that is going for the unpopular pairs should just have adequate knowledge and understanding of them because they can just get a trader confused to understand how they move.

Link to comment
Share on other sites

  • 1 month later...

I don't like to trade in unpopular pairs because the brokers do charge the traders high fee for trading in it. If you are a scalper, the charge will mean that you cannot be able to make good profit because you will spend the money in paying for the fee. It is better if you do it with high liquidity pair. But if you know how to trade in unpopular pair, you can be able to make profit from it.

Link to comment
Share on other sites

But sometimes I still wonder as I know there are those who trade on it and still make profit from it. It's about understanding of the said pair and the knowledge of it. That they are unpopular pairs doesn't mean there are no chances of making good profit with them if the trader understands how to trade with it.

Link to comment
Share on other sites

  • 3 weeks later...

But occasionally I keep on to ponder as I understand you may learn individuals who trade on it and continue to make take advantage of it. It certainly is about comprehension of the stated pair together with understanding of it. That they're unpopular pairs does not imply you can find not any options of earning fantastic receive with them Should really the trader understands.  

Link to comment
Share on other sites

  • 1 year later...

The only reason I can say is that most of the unpopular pairs are highly costly to trade because of their spread; it’s no issue to trade on any pair as long we understand it, but if we have no clue then we should most definitely avoid trading in that. I only prefer to trade on 4-5 pairs because of that makes my task easier and also due to low spread by OctaFX broker, it’s already become much simpler and they have various spread for different pairs like 0.2 pips for some and even lower for others.

Link to comment
Share on other sites

I don't think leave greed is better, why i defend greed here? Because greed is the main reason people trade. I always remember what Warren Buffet said Be Fearful When Others Are Greedy and Greedy When Others Are Fearful. It means you need to control emotion not to leave it, surpress it when others are greedy so you don't fall to pit but let it like tamed beast when others are fearful. I think you already know what i mean by this.

Link to comment
Share on other sites

It is totally simple because unpopular pairs has higher spreads and also their movement is not really so much and harder to predict. I know that some has higher volatility such as GBPJPY even that is cross pairs, but cross pair is hard to predict more than major pairs.

Link to comment
Share on other sites

Unpopular pairs mostly named as exotic pairs have huge spreads. One of the reason is this for many traders not trading them. Then their movement is also very wild. You don't have much news events of such currency to analyze them properly.

Link to comment
Share on other sites

Although it’s not any major research that we should not trade on unpopular pairs, but it’s just common sense that say this since we are well aware that if we do trading on pairs we are not sure about or is unpopular then one mistake can be highly damaging and there are very less chance of reversal.

 

I prefer trading on popular pairs like EU or UJ, it’s simple to understand them while my broker OctaFX charges very small spread which ranges around 0.1 – 0.2 pips, so it’s far easier to trade with such favorable conditions and another benefit is that they have highly smooth trading platform, so my trades are always operated instantly without any re-quotes or delay happening!

Link to comment
Share on other sites

Spread and Risk are the reason why we shouldn't trade unpopular pairs. It lack of liquidity which make it riskier than before. Well if you are an experienced traders and has a lot of reference with exotic pairs maybe you can see this as good chance but someone who are just getting used with major or minor pairs it is better to avoid this one. 

Link to comment
Share on other sites

  • 2 months later...

Yes that is true sometime the spread is so much here so we need to be sure that we trade in those pair that is minimizeable and that is really the real truth as spread is only about 2pips with my broker

Well spread is so much because it lack of people who want to trade here, unpopular pairs for sure has nice movement or even doesn't have something like that, but you could be a market maker here, even you buy or sell will affect surely the movement, if you have bigger capital this maybe suitable for you.

Link to comment
Share on other sites

Nice movement? I don't think so but it is surely volatile and for someone who want to win bigger pips insted of high spread that unpopular pairs has can choose it. Usually you also can become a market maker which become a good thing because you drive the price to rise or fall LOL

Link to comment
Share on other sites

  • 1 month later...

Yes nice movement because of its volatile movement, if the price cannot move how can you make profit? For example in one day the movement is only 10 pips? Wanna trade in that pair? I am sure you won't trade there. Unpopular pairs usually have small movement and maybe what you mean becoming a market maker in exotic pair?

Link to comment
Share on other sites

Yes nice movement because of its volatile movement, if the price cannot move how can you make profit? For example in one day the movement is only 10 pips? Wanna trade in that pair? I am sure you won't trade there. Unpopular pairs usually have small movement and maybe what you mean becoming a market maker in exotic pair?

Then don't trade if you don't like it or just trade during news, usually even exotic pairs will move especially if that is an exotic currency which paired with popular currency eg: CNYUSD or MXNUSD. In US economy based news you will find it will give impact to those who paired with US and in this case the same for Exotic Pairs.

Link to comment
Share on other sites

  • 2 months later...

We will obviously not able to feel comfortable with unpopular or exotic pairs because firstly the spread will be very high which is simply not right for newbies, so unless there is logical reason to do it. I always focus on popular pairs like EU or EJ since they are easier to handle then the rest and more importantly, I can create better management knowing the movement limit and history, but when one puts his downs on unknown pairs, it is more than likely to create trouble. I enjoy trading on pairs I mention especially because of OctaFX broker where they have got low spreads starting from just 0.1 pips while there is also stop out level of just 15% with margin been 20%.

Link to comment
Share on other sites

  • 5 months later...

I actually rarely or i can say i try unpopular pair just a few times. Unpopular pairs has some disadvantages such as low movement, unpredictable movement, and high spread. But there is a time where you can be a market maker, since the liquidity is low your act could bring the difference to the market, but mostly people avoid it including me because of those advantages i said above.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...