Exotic Pairs

Exotic pairs set one major currency (such as USD or EUR) against the currency of a smaller or emerging economy — for example USD/TRY, USD/ZAR, USD/MXN, and from a Polish perspective also USD/PLN and EUR/PLN. They carry low liquidity, wide spreads (sometimes tens of pips) and sharp, often politically driven volatility with more frequent price gaps. Exotic does not mean geographically distant; it refers to the currency's small share of global FX turnover.