FOREX THEORY
Be Careful Trading Obscure Currency Crosses (Part 2)
That’s because most forex traders would rather hang out with
the cool crowd than the obscure crosses!
We’re talking about really weird combinations like AUD/CHF,
AUD/NZD, CAD/CHF, and GBP/CHF. That’s why we call them obscure crosses (duh!).
Trading in these pairs can be more difficult and riskier
than trading euro or yen currency crosses.
Since very few forex traders trade
them, transaction volume is much lower resulting in lower liquidity.
Due to the illiquid markets for these crosses, their prices
can become quite volatile, so being stopped out on whipsaws can become a common
occurrence.
Check out these screenshots of AUD/CHF and GBP/CHF:
 That’s because most forex traders would ...){kind=link}
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