Nancy parez Posted February 16, 2022 Share Posted February 16, 2022 Is forex as risky as everyone thinks? One way to measure risk is to compare a financial product's risk relative to its return. If you take the time to compare an investment in forex to common investments such as equities and fixed income, you will find that from a risk/reward standpoint, forex investments provide respectable returns and should be considered viable portfolio diversification tools. The spot forex market is unique to any other market in the world, as trading is available 24-hours a day. Somewhere around the world, a financial center is open for business, and banks and other institutions exchange currencies, every hour of the day and night with generally only minor gaps on the weekend. Essentially foreign exchange markets follow the sun around the world, giving traders the flexibility of determining their trading day. So, Where's the Risk? The reason retail forex trading is generally considered a high-risk investment is that its primary appeal is the ability to invest with margin. And a lot of margin at that! That's when your broker loans you money to invest in the forex market based on a small security deposit. Forex allows margins that are orders of magnitude that traditional banks and stockbrokers use and offer. The consequence is that small moves in the currency are magnified and have a major impact on your funds. This means you can make quite a bit of money. But, you can also lose a comparable amount of money as well. That makes it a high risk/high reward investment vehicle. Understanding risk in FX trading In FX trading on margin there are 2 major risk factors to consider: 1. Margin FX traded on margin means you only need to deposit a small percentage of the overall value of the trade, known as margin. Therefore, with a smaller initial capital outlay you have exposure to a much larger position. This means that your gains could be multiplied if the market moves in your favour. Equally however, your losses could be magnified in exactly the same way if the market goes against you. 2. Volatility Foreign exchange rates can change rapidly in response to any real-time economic and political events. This offers great opportunities for traders to make profits in the forex markets. However, volatility can be a double-edged sword, and losses can accumulate just as quickly. On the other hand, you need to know about currency risk. Currency risk is also referred to as the exchange rate risk. Currency risk arises due to the variation in the price of one currency up against another. Companies and investors having a business operation or assets spread around the world are more likely to experience currency risk. This risk can go on to creating irregular losses or profits. For learn more about forex trading and forex trading risk management join this forex forum. https://forum.forex Thank You Link to comment Share on other sites More sharing options...
uncle gober Posted February 17, 2022 Share Posted February 17, 2022 traders also need analytical skills, which must be able to be considered properly, this is done so that traders can become traders of the month together with Tickmill. 1 Link to comment Share on other sites More sharing options...
Nancy parez Posted February 17, 2022 Author Share Posted February 17, 2022 Thank You Link to comment Share on other sites More sharing options...
Resolve Posted February 21, 2022 Share Posted February 21, 2022 On 2/17/2022 at 8:41 AM, uncle gober said: traders also need analytical skills, which must be able to be considered properly, this is done so that traders can become traders of the month together with Tickmill. Forex traders will need to make use of the correct analysis in doing their trades in the Forex markets. Link to comment Share on other sites More sharing options...
maspluto Posted February 22, 2022 Share Posted February 22, 2022 In forex it will never be an instant, this is done so that traders can be more maximal in getting the security and comfort of maximum trading like what I got from Tickmill. Link to comment Share on other sites More sharing options...
mlawson71 Posted February 26, 2022 Share Posted February 26, 2022 There are many risks related to trading. Some are related to the traders' own knowledge, others, unfortunately, are related to a poor choice in brokers. A lot of traders lose money because they get scammed, the statistics prove as much. It's important to pick a reliable broker with a license from a respected regulator, I think, to ensure one's security of funds. Link to comment Share on other sites More sharing options...
Mrsooduraske Posted March 3, 2022 Share Posted March 3, 2022 The reason retail forex trading is generally considered a high-risk investment is that its primary appeal is the ability to invest with margin. And a lot of margin at that! Link to comment Share on other sites More sharing options...
maspluto Posted March 10, 2022 Share Posted March 10, 2022 the funds and risks that exist must be able to be considered properly, this is done so that traders can be more leverage in getting maximum trading security and comfort like what I got from Tickmill. Link to comment Share on other sites More sharing options...
broforex51 Posted March 13, 2022 Share Posted March 13, 2022 why don't you trade with cryptocurrencies as your pair? I think it is more profitable for you. Join FreshForex now and start trading cryptocurrencies. You can deposits via bitcoin also. FreshForex is the best broker for you. Link to comment Share on other sites More sharing options...
uncle gober Posted March 14, 2022 Share Posted March 14, 2022 The selection of the existing broker must be able to be considered carefully, this is done so that traders can be more leverage in getting maximum trading security and comfort like what I got from Tickmill. Link to comment Share on other sites More sharing options...
Resolve Posted March 14, 2022 Share Posted March 14, 2022 2 hours ago, uncle gober said: The selection of the existing broker must be able to be considered carefully, this is done so that traders can be more leverage in getting maximum trading security and comfort like what I got from Tickmill. I am doing my Forex Trading with the ECN Forex Broker FXOpen Markets and they allow me to do News Trading and Scalping 😄 Link to comment Share on other sites More sharing options...
uncle gober Posted April 5, 2022 Share Posted April 5, 2022 in forex it will never be instant, so it is important for traders to be able to be more optimal in getting maximum trading security and comfort like what I got from Tickmill. Link to comment Share on other sites More sharing options...
Resolve Posted April 6, 2022 Share Posted April 6, 2022 On 4/5/2022 at 9:20 AM, uncle gober said: in forex it will never be instant, so it is important for traders to be able to be more optimal in getting maximum trading security and comfort like what I got from Tickmill. We will need to do such type of trading that can give us the maximum amounts of profits. Link to comment Share on other sites More sharing options...
maspluto Posted April 7, 2022 Share Posted April 7, 2022 in forex it will never be instant, so it is important for traders to be better and be able to get more leverage in getting maximum trading security and comfort like what I got from Tickmill. Link to comment Share on other sites More sharing options...
Resolve Posted May 2, 2022 Share Posted May 2, 2022 On 4/7/2022 at 7:23 AM, maspluto said: in forex it will never be instant, so it is important for traders to be better and be able to get more leverage in getting maximum trading security and comfort like what I got from Tickmill. We will need to make some Efforts so that the risks present into our trades can start coming down. Link to comment Share on other sites More sharing options...
uncle gober Posted May 4, 2022 Share Posted May 4, 2022 Something that we will never be instant in running this trade, we must learn where this trading method is carried out properly and correctly. Rest assured as long as we want to try there will definitely be results which we will be able to get in trading at the Tickmill broker Link to comment Share on other sites More sharing options...
Resolve Posted May 8, 2022 Share Posted May 8, 2022 On 5/4/2022 at 7:59 AM, uncle gober said: Something that we will never be instant in running this trade, we must learn where this trading method is carried out properly and correctly. Rest assured as long as we want to try there will definitely be results which we will be able to get in trading at the Tickmill broker When the Risks that are present in our trading will start coming down we can make more Profits also. Link to comment Share on other sites More sharing options...
uncle gober Posted May 10, 2022 Share Posted May 10, 2022 the funds and risks that exist must be able to be considered properly, this is done so that traders can get the maximum in getting maximum trading security and comfort like what I got from Tickmill. Link to comment Share on other sites More sharing options...
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