Foreign Exchange Risk - How to Handle it and Become a Successful Forex Trader

Forex risk is the possibility of loss occurring from a negative movement in fx rates whilst holding a long or short position.Managing Foreign Exchange RiskAn advantage that attracts investors to currency trading is the higher leverage available when compared to the other financial markets. One of the biggest mistakes a newbie trader can make isn't understanding the effect leverage has on their bottom line. You have to pick the best forex system for risk management.What is leverage?In the forex markets, leverage is where a trader controls an amount of money with a little of his own money (margin) and borrowing the remainder from his forex broker.ExampleA forex trader with an $1,000 margin,

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