FOREX trading is undoubtedly risky. Anyone contemplating FOREX trading should understand the following:
THE RISK OF LOSS IN TRADING FOREX CAN BE SUBSTANTIAL. ONE SHOULD THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE IN LIGHT OF THEIR FINANCIAL CONDITION. FOREX TRADING MAY NOT SUITABLE FOR EVERY INDIVIDUAL. IT IS ADVISABLE TO ALWAYS TRADE WITH RISK CAPITAL, “MONEY THAT ONE CAN AFFORD TO LOSE”. LEVERAGE CAN MAGNIFY BOTH GAINS AND LOSSES.
If one is trading with high leverage, then even a small move against your position could result in a large loss, including the loss of the entire initial deposit or margin fund. Keep in mind that the market can always move against. No one can predict prices with certainty.
Also, the trading system could break down. If you are using an Internet-based or other electronic system to place trades, some part of the system could fail. In case of a system failure, for a certain period you may not be able to enter new orders, execute existing orders, or modify or cancel orders that were previously entered. A system failure could also result in loss of orders or order priority.
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