Forex Various risks may face in forex

[FXOchartist]

Forex is an online business model that has the potential to be a source of profit for traders around the world. Understanding how to trade forex correctly, allows traders to achieve long-term profits in forex trading.

However, forex does not come without risk. Forex is an investment product with high risk. Investors may lose half or all their investment in forex. In essence, the main risk in forex is losing money.

However, various other factors can cause losses in forex. Referring to the FXOpen blog, there are several factors that traders may face.

• Market risk. Generally outside the trader's control, such as inflation, geopolitics, and economic crises.
• Trading risks. Such as slippage, overleveraging, and overnight price movements.
• Lack of management. Traders without implementing good money management have the potential to increase risk factors.
• Unauthorized trading. this occurs when a trader executes trades without authorization, exceeds loss limits, or engages in the unauthorized execution of trades on a customer's account.
• Scammer risk. Many scammers prey on novice traders with sweet promises to trap them

In trading, it is recommended to define risk tolerance, use stop loss, and diversify trading to manage risk.

 

[Asahi]

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