Currency pair USDMXN, features of trading the Mexican peso
Forex trading is not limited to the five most liquid currency pairs; if you want, you can also make money on exotic assets.
For example, on the same USDMXN pair, which is formed by such currencies as the American dollar and the Mexican peso.
The base currency in this asset is the US dollar, so one lot will be equal to 100,000 US dollars, and the Mexican peso will be used as the quoted currency.
The USDMXN pair has quite high volatility, this is due to the instability of the Mexican peso and the fact that both currencies belong to the same trading session.
Basic trading parameters for the USDMXN currency pair
The USDMXN pair exhibits the greatest volatility during the American trading session:
The American session runs from 12:00 to 21:00 GMT, and if you take into account the time difference, we can say that the pair is almost ideal for those who like to trade Forex in the afternoon.
Spread size – many do not like exotic currencies due to the large spread size, believing that these assets are not suitable for intraday trading, since the trend takes a long time to compensate for the spread.
Yes, indeed, at first glance it may seem that 20-400 spread points when opening a transaction on the USDMXN currency pair is quite a lot. But if you consider that the peso is traded 1 to 20 against the US dollar, then when opening a transaction of 1 lot you will only have to pay about 1-20 US dollars.
Which is not so much, because the price range on average is 1800 points per day, and sometimes 600 points per hour:
It should be remembered that the smallest spread for this asset will be during the American trading session; at this time it can be only 20 points, which makes USDMXN quite a suitable pair for scalping.
Swap size – on the USDMXN currency pair there is a fairly large difference in the swap size for buy and sell transactions.
Swap on sell transactions – positive (+36) points
Swap for buy transactions – negative (-48) points
If we take into account the swap, we can say that it is more profitable to make transactions to sell the US dollar.
The USDMXN currency pair is a rather interesting trading asset; most often it can be found in the metatrader 5 trading platform - https://time-forex.com/vsebrokery/broker-metatrader5