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Isn't The Forex Market A Volatile Place To Be?

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    Yes and no is probably the answer here.

    Surprisingly, perhaps, when compared with other money markets, the sheer scale of forex trading generally ensures greater price stability and better leverage.  For with built-in protection for traders in the form of automatic limits for buying and selling, safety margins and other risk protection measures, the likelihood of ending up in the red even when the forex market is volatile is substantially reduced.

    Anyone contemplating dabbling in forex trading should be aware that the market is one of the most liquid around and subject to strong currency trends. Even if you have had experience of trading elsewhere in stocks and shares etc., it is always best not to gamble on the forex with sums of money you cannot afford to lose.

    Often we will hear leverage figures of 100:1 being quoted, but without adequate risk protection in place the swings between profit and loss can be stark. Even veteran forex traders can be caught out and take large hits from time to time.
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    Wombat96 

    answered 3 years ago

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