Risks Trading Forex
See more videos for trading forex risks. Tip 4. manage forex risk by limiting your use of leverage. linked to the previous forex risk management tip is limiting your use of leverage. leverage, in a nutshell, offers you the opportunity to magnify profits made from your trading account, but it also increases the potential for risk. for example: leverage of 1:200 on a $400 account means that you can place a trade for up $80,000 ($400 x 200). Even though it’s pretty easy to start trading with an online forex trading account, this doesn’t mean that it’s without risks. as a forex trader, the most obvious risk is losing money, which is further risks trading forex amplified by the leverage that brokers provide (more on this is covered below). but there are other risks you need to be aware of. The risks of forex trading are genuine, and according to a 2014 bloomberg report, almost 70% of forex traders lost money in each of the preceding four quarters. unsurprisingly, data compiled by the na...