Trading in Forex market implies a high level of risk and does not necessarily suit all investors. Before making a decision on participating in operations in the Forex market, you should carefully review the reasons for investing, your knowledge and experience, as well as the ability and desire to take such risks. But the most important – never invest money that you cannot lose.
Every deal in the Forex market carries a high level of risk. Any operation with currencies implies risk, e.g. change of political and economic situations may substantially affect liquidity, currency price, etc.
When trading in the Forex market, leverage is used, which implies that any market change can have a greater impact on an account. The leverage may work for you and against you. The chance of losing all the money invested as an initial margin is real, and besides, if the market movement against your positions you may have to invest additional money to keep the positions, otherwise, they may be liquidated.
Investors reduce their risk levels by applying defense strategies and “stop-loss” and “limit” orders.
There are risks related to software operating via the Internet and the actual risk of equipment and software failure.