Foreign Exchange trading has a number of risks that you should be aware of before opening a position. These include:
Risks related to leverage – in volatile market conditions, leveraged trading can result in greater losses (as well as greater capital gains).
Risks related to the issuing country – the political and economic stability of a country can affect its currency strength. In general, currencies from major economies have greater liquidity and generally lower volatility than those of developing countries.
Risks related to interest rates – countries’ interest rate policy has a major effect on their exchange rates. When a country raises or lowers interest rates, its currency will usually rise or fall as a result.
We offer risk management tools that can help you minimise your trading risks.
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