Before you decide to perform trading operations on the Forex market, you should thoroughly analyze aims of investing, your knowledge, experience and desire to take the risk. But the most important is that you should never invest your money into this business if the loss can negatively affect your lifestyle.
Each deal on the Forex market is highly risky. Any currency operations imply certain risk, for example, the changes of political and economic situation can significantly influence liquidity, price of currency etc.
Moreover, leverage is used while performing transactions on the Forex market. It means that each market fluctuation affects the account multiply increased. Leverage can magnify both gains and losses. There is a high possibility to lose all of the funds allocated as initial margin as well as you may be required to invest additional funds to support opened positions.
If you don’t meet the requirement to increase the margin in time, your position will be closed, and you will have to pay for all possible losses. Investors reduce the level of risk they are exposed to by using protective strategies (such orders as “Stop Loss” and “Limit”).
The International Association of Forex Traders is not responsible for any financial losses you may encounter relying upon information presented on this website, including Forex data, quotes, charts and signals.