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Is it risky trading forex?


Linah
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Hello, I'm still interested in FOREX, and I want to give it my best shot. However, I'm second-guessing the whole process, and I feel terrible. I don't want to dive into something I'll regret later. Trading FOREX will be an investment, and therefore, like any other investment, I'll expect a good profit. I would like to understand the risks related to FOREX trading before I deposit my money. 

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Hi Linah, FOREX, just like any other financial market, comes with risks of various forms. Trading forex is just as risky as any other investment you would make. 
One of the most common risks is that as you hope that for example, the value of Euro will go up in proportion to that of the U.S. Dollar, then your guess might be wrong, and the trade, therefore, moves against you.
An additional risk can occur whereby you trade less popular currency pairs, and since your margin account is not well managed, then the transaction is unstable.
Another risk which you can come across while trading forex is the exchange rate risk whereby the value of currency changes.
Also, you will have the interest rate risk, which is caused by variations in forwarding spreads. Good luck!

Edited by Nickklein
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