WHAT ARE THE RISKS IN FOREX?

WHAT ARE THE RISKS IN FOREX?

The main risk in the forex market is the use of leverage. Leverage multiplies your profits many times over when the price moves in the direction you predicted, but can also cause just as quick losses if the situation is not in your favor. Statistics show that most forex traders lose their investments, but the risk can be reduced.

To reduce risk, it is necessary to develop a trading strategy and strictly follow it, be decisive and not greedy. A trader must constantly learn, be able to extract information from the news, be able to analyze it, and anticipate possible changes in the exchange rate. Great help is provided by technical analysis and trading robots, which reduce the number of errors. You also should not use your entire deposit or maximum leverage to trade.