Understanding The Risks Involved in Forex Trading

Risks Involved in Forex Trading

The Forex market presents a great investment opportunity for traders to profit. A $5 trillion daily worth of transactions shows what a profitable venture it is. Understanding the market and having an effective trading plan is essential for success in the market. However, there are risks involved in Forex trading that you should know about. They are as follows: Liquidity Risk Liquidity risk is the risk that arises when there…


Risk Management in Forex Trading Explained

Risk Management in Forex

Risk Management is one of the most discussed topics in financial trading. Most traders end up with an unsuccessful trading journey because they have never studied what risk management is and how to implement it in their trading plan. Not having a trading plan is one other major drawback but today’s focus is on risk management and in coming articles we will cover trading plans for our readers. How Much…


How to Use A Stop Loss When Trading Forex

Stop Loss

The foreign exchange market will always be unpredictable. Economic and political news as well as other factors influence how the market prices move, and sometimes traders unfortunately incur losses that they were not prepared for. This is the reason why knowing about the stop loss and setting one up is important to the trader.   What is a Stop Loss? A stop loss is an order entered by a trader…


What is Hedging?

If you are just starting out in trading you may have come across the term hedging and have wondered what it’s all about. Read on to find out what is hedging and how it can be important to you. Hedging is a strategy applied to reduce the amount of loss incurred in case of occurrence of an unfavorable event. Hedging only reduces the negative impact of an event on an…