The risks associated with trading
TRADING IS NOT SUITABLE FOR EVERYONE. TRADING FOREX INVOLVES HIGH RISKS, WHILST TRADING CAN BE HIGHLY PROFITABLE WITHOUT THE RIGHT ACCOUNT MANAGEMENT IS CAN BE HIGHLY DANGEROUS TOO.
Trading the foreign exchange markets on margin carries a HIGH LEVEL OF RISK, and may not be suitable for all investors or traders. Before deciding to trade the foreign exchange markets you should carefully consider your investment objectives, level of experience, and risk appetite.
There is always the possibility you may lose the money you have invested, and therefore should understand the risks involved and never trade with money that you can’t afford to lose.
The high degree of leverage associated with trading currencies means that the degree of risk compared to other financial products is higher. Leverage (or margin trading) often works in favour of experienced traders. However, for the inexperienced, it may work against you, and thus resulting in a loss.
There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair.
You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Accuracy of Information
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