Understanding Forex Risk

1
Understanding Forex risk

• Presented byThe Forex Secret

2
Introduction
The Forex market is one of the biggest financial
markets on the planet, with everyday transactions
totalling more than 5.1 trillion US dollars.
Banks, financial establishments, and individual
investors therefore have the potential to make
huge profits and losses.
3
Forex Risk
Forex trading risk is simply the potential risk
of loss that may occur when trading. 
4
Market risk
Financial market performing differently to how
you expect
Most common risk in Forex trading
If you believe the US dollar will increase
against the Euro and you buy the EURUSD currency
pair only for it to fall, you will lose money.
5
Leverage risk
Most Forex traders use leverage to open trades
that are much larger than the size of their
deposit
Even possible to lose more money than you
initially deposited
6
Interest Rate Risk
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
7
Liquidity risk
Some currencies are more liquid than others
Which means traders can be at risk of unexpected
interest rate changes
More supply and demand for them
Trades can be executed very quickly
Trade isn't executed at the expected price, and
you make a smaller profit as a result.
8
Risk of ruin
Just Imagine in spite of having long term
strategies it moves opposite direction
Need enough capital on your account until it
moves to your direction.
If you don't have enough capital, your trade
could be closed out automatically and you lose
everything
9
Risk of ruin
For More Info Please Visit
Theforexsecret.com