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Understanding Forex risk

Presented by
The Forex Secret
Introduction

The Forex market is one of the biggest


financial markets on the planet, with
everyday transactions totalling more
than 5.1 trillion US dollars.

Banks, financial establishments, and


individual investors therefore have
the potential to make huge profits
and losses.

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Forex Risk

Forex trading risk is simply the


potential risk of loss that may occur
when trading. 

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Market risk
Financial market performing
differently to how you expect

Most common risk in


Forex trading

If you believe the US dollar


will increase against the
Euro and you buy the
EURUSD currency pair only
for it to fall, you will lose
money.
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Leverage risk
Most Forex traders use
leverage to open trades that
are much larger than the size
of their deposit

Even possible to lose more money


than you initially deposited

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Interest Rate Risk

Economy's interest rate can


have an impact on the value
of that economy's currency

Which means traders can be at


risk of unexpected interest rate
changes

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Liquidity risk
Some currencies are more
Which means
liquid than others
traders can be at risk
More supply and demand for of unexpected
them interest rate changes

Trades can be executed very quickly

Trade isn't executed at the expected


price, and you make a smaller profit as
a result.

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Risk of ruin
Just Imagine in spite of
Need enough capital
having long term strategies it
on your account
moves opposite direction
until it moves to
your direction.

If you don't have enough capital,


your trade could be closed out
automatically and you lose
everything

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Risk of ruin

For More Info Please Visit

Theforexsecret.co
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