Be careful Trading Obscure Currency Cross Pair
Obscure Currency Cross Pair , even though the Euro and Yen Cross Pair are also pairs that are very much traded on the forex market there is a currency pair without involving US Dollars, Euros, and Yen which we call Obscure Currency Cross Pair.
Examples of obscure currency cross pair are GBP / CHF, CAD / CHF, AUD / NZD, and AUD / CHF. And it is very difficult to predict market direction when forex trading uses this type of pair.
Because trading cross pairs of this type is very difficult to predict and full of risks, very few forex traders use it as a trading object so that the transaction volume is low, which means lower liquidation.
Since this cross pair is not liquid, the price is very volatile so we will face a lot of price and risk uncertainty.
For more details, please refer to the trading chart of obscure currency cross pair AUD / CHF and GBP / CHF.
If we look at the graph above a lot of spikes appear and we also have to set the right trading strategy for example, setting a rather wide stop loss. But if you are a master, you can still get profit under any conditions like the following graphic example.
Even though we find it difficult to determine trends in this type of cross pair, but because you are an expert or a forex master, it is still able to see opportunities such as trading areas that are colored red above.
So the point is that we must be more careful when trading this type of currency pair because vigilance against market volatility is needed in addition to determining the trending market.