Exotic currency pair
An exotic pair combines a major currency with that of an emerging or smaller economy, such as USD/TRY, USD/MXN, EUR/PLN or USD/ZAR.
Exotics trade far less than the majors. The result: wide spreads, sometimes tens of pips, big gaps around news, and swaps that are often high because of interest rate differences.
Their price reacts strongly to local politics, central bank interventions and capital controls. A move of several percent in a single day is not unusual.
Maximum retail leverage under ESMA, FCA and ASIC rules is 20:1, but the real question is cost: check the spread and the swap before you open, and cut your size. Many experienced traders simply leave them alone until they know the major pairs well.