In the forex market, exotic currency pairs are the third most often traded. These pairings consist of a currency from a developing or emerging economy, and one of the eight main currencies such as USDTRY, USDZAR, USDCNH and many more. FXTM offers 17 exotic pairs in total. You can see the exotic pairs we offer on our contract specification page.
Exotic currencies have a higher level of volatility, which increases the risk of trading them, but also offer trading opportunities when opportunities with major FX pairs are limited. Emerging market currencies offer a higher level of interest rate, which can make them attractive for carry trades overnight.
FXTM provides floating leverage up to 1:200 for major pairs, however, there are some exotic pairs with lower leverage such as NOK and SEK pairs at the maximum leverage of 1:50. Please see here for more information about the leverage and margin requirements for exotic pairs.