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Risks & Rewards of Forex Trading By Fuad Ahmed

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Although Forex trading can be a lucrative business, it does come with its own set of potential risks. Experienced traders such as Fuad Ahmed have discussed various methods to reduce these risks and maximize profit. Here we will discuss some of the risks and rewards involved with Forex trading that every trader needs to know before delving into this market.
RISKS Here are some of the risks involved in Forex Trading that you should be aware about: 1.Leverage risks: In the forex trading world, leverage necessitates that you make a small initial investment in order to make trades in foreign currencies. This is called a margin. When prices fluctuate, the trader must pay an extra margin. When the market conditions become volatile, using leverage aggressively can incur significant losses.
2.Interest rate risks: A country’s exchange rates are affected by their interest rates. If the interest rates of a country rise, it will get a large amount of investments and its currency will become stronger. Th…