Exotic pairs match a major currency with the currency of a smaller or emerging economy, such as USD/TRY or EUR/ZAR. They typically have wider spreads, lower liquidity, and sharper price swings than majors, which makes them riskier and more expensive for beginners to trade.
Forex Term
Exotic Pairs
A major currency paired with an emerging-market currency.
Example
USD/TRY (US dollar vs Turkish lira) is a common exotic pair with a much wider spread than EUR/USD.
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Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.