You Are On Your Own

forex-your-own.jpgBy working on our own you can minimize your own risks. They are many traders out there who depend on somebody else to trade their moneyand ended with big losses. Forex is the biggest market on earth. Forex is a zero-sum-game. For every win there is a loss.

The only funds that should ever be used to speculate in foreign currency trading are funds that represent risk capital. Or in other words the funds you can afford to lose without affecting your financial situation.

Most dealers will also require you to have a certain amount of money in your account for each transaction. This security deposit, sometimes called margin, is a percentage of the transaction value and may be different for different currencies.

Forex broker can trade against you. Forex broker can file for bankruptcy. Both cases are risky for your funds. There is no central authority that would exclude the risks of delivery.

 

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