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论坛 Suggestion Box Some Forex trading warning, you should know.
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Some Forex trading warning, you should know.

Jul 05, 2020 04:28 pm
Lena4030 User

帖子: 41
入会日期: 14/04/2020

Hello guys,

everybody know Forex trading is a risky business, But if you have enough experience and knowledge, then you also can get success in Forex. Here are some forex trading warnings, I think you should know these warnings before start forex trading.

Exchange Rate Risk:

Traffic sign to demonstrate exchange rate risk

Exchange rate risk is the risk caused by changes in the value of currency. It is based on the effect of continuous and usually volatile shifts in the worldwide supply and demand balance. For the period the trader’s position is outstanding, the position is subject to all price changes.

Leverage risk:

Because most Forex traders use leverage to open trades that are much larger than the size of their deposit, in some cases it's even possible to lose more money than you initially deposited.

High Risk Investment:

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss in excess of your initial investment. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Liquidity risk:

Some currencies are more liquid than others. This means there's more supply and demand for them, and trades can be executed very quickly. For currencies where there is less demand, there might be a delay between you opening or closing a trade in your trading platform, and that trade being executed. This might mean that the trade isn't executed at the expected price, and you make a smaller profit (or even lose money) as a result.

Interest rate risk: 

An economy's interest rate can have an impact on the value of that economy's currency, which means traders can be at risk of unexpected interest rate changes.

Trading software and wallet security risk:

You need to ensure maximum security before using trading software. Just as new technologies are being discovered, so is human privacy is going to unsecure. Because right now your trading software or your trading wallet can be hacked. So you need to ensure maximum security of your trading software. So, if you want to secure your trading software or your trading wallet, you need to know more about online and software. You can visit this site(Hide Protection Technology Explain). this is an Arab technology security-related blog. I  hope you will get much new information on this blog about technology and security. The site is below.

Risk of ruin: 

This is the risk of you running out of capital to execute trades. Just imagine that you have a long-term strategy for how you think a currency's value will change, but it moves in the opposite direction. You need enough capital on your account to withstand that move until the currency moves in the direction you want. If you don't have enough capital, your trade could be closed out automatically and you lose everything you've invested in that trade, even if the currency later moves in the direction you expected.

So, I think these tips will help all of you, and I hope you understand.

thank you.