chrisevad
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forex-it.com - 2007/01/18 18:32
THE RISKS OF TRADING
IN THE FOREX MARKET
Although every investment involves some risk, the risk of loss in
trading off-exchange forex contracts can be substantial. Therefore,
if you are considering participating in this market, you should
understand some of the risks associated with this product so you
can make an informed decision before investing.
As stated in the introduction to this booklet, off-exchange foreign
currency trading carries a high level of risk and may not be suitable
for all customers. The only funds that should ever be used to speculate
in foreign currency trading, or any type of highly speculative
investment, are funds that represent risk capital – i.e., funds you
can afford to lose without affecting your financial situation. There
are other reasons why forex trading may or may not be an appropriate
investment for you, and they are highlighted below.
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