USDMXN Currency Pair: Peculiarities of Trading the Mexican Peso

Forex trading isn't limited to the five most liquid currency pairs; if you're looking, you can also make money on exotic assets.

For example, on the same USDMXN pair, which is formed by currencies such as the US dollar and the Mexican peso.

The base currency for this asset is the US dollar, so one lot will be equal to 100,000 US dollars, and the quote currency will be the Mexican peso.

The USDMXN pair has quite high volatility, which is due to the instability of the Mexican peso exchange rate and the fact that both currencies belong to the same trading session.

Key parameters for trading the USDMXN currency pair

The USDMXN pair has the highest volatility during the American trading session:

The American session runs from 12:00 to 21:00 GMT, and given the time difference, it can be said that the pair is almost ideal for those who like to trade Forex in the afternoon.

Spread size – many people dislike exotic currencies because of the large spread, believing that these assets are not suitable for intraday trading, as the trend takes a long time to compensate for the spread.

Yes, at first glance, it may seem like a 20-400 pip spread when opening a trade on the USDMXN currency pair is quite high. However, considering that the peso trades 1:20 against the US dollar, opening a trade of 1 lot will only cost you about 1-20 US dollars.

Which isn't all that much, since the price movement range averages 1,800 points per day, and sometimes even 600 points per hour:

It should be remembered that the smallest spread for this asset will be during the American trading session, at which time it can be as low as 20 pips, which makes USDMXN a very suitable pair for scalping.

Swap size – on the USDMXN currency pair, there is a fairly large difference in the swap size between buy and sell transactions.

Swap on short transactions is positive (+36) points

Swap on buy transactions is negative (-48) points

Taking into account the swap, it can be said 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 found on the MetaTrader 5 trading platform - https://time-forex.com/vsebrokery/broker-metatrader5