From Our Currency Research Team
Strictly speaking, in foreign-exchange trading, any currency that's not one of the seven majors is considered an "exotic" currency. So in other words, any currency besides the U.S. dollar, euro, British pound, Japanese yen, Canadian dollar, Swiss franc, and Australian dollar.
If you want to trade these seven major currencies, it's fairly easy to do so either by buying a currency ETF (like a euro ETF or Japanese yen ETF), or by investing in a foreign currency CD. You can also easily buy options for any of these, or trade them in the spot foreign-exchange market.
But what if you want to trade the exotic currencies? These are the currencies that are located "outside the box" — that don't fit neatly with the seven most commonly traded currencies.
First of all, you need to have a trader's blood. That's because these currencies are mainly tied to volatile emerging markets. That means these currencies can move fast — and you can either make or break your trading account very quickly.
These exotic currencies include:
NZD = NZ$ = New Zealand Dollar = Kiwi
CNY = Chinese yuan
HKD = HK$ = Hong Kong Dollars
AED = Dirham = United Arab Emirates currency
INR = Rupee = Indian currency
BRL = Real = R$ = Brazilian currency
RUB = Ruble = Russian currency
CZK = Kč = Czech Koruna
DKK = kr = Danish Krone
HUF = Ft = Hungarian Forint.
MXN = Mex$ = Mexican Peso
NOK = kr = Norwegian krone
PLN = zl = Polish Zloty.
SGD = S$ = Singapore Dollar
ZAR = R = South African Rand
SEK = Swedish crown = kr = Swedish Krona
THB = Thai Baht
ISK = Ikr = Icelandic krona
Please look for more information on how to tame these exotic currencies coming in the months ahead.
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