Avoiding the pitfalls in currency trading

Trading currencies – known as foreign exchange, forex or FX – is widely viewed as an exceptionally high-risk market. Given that most new FX traders ultimately lose money, there’s evidently some truth to that.

But the risks in FX don’t lie in the fact that it’s an especially volatile market; big moves are relatively rare in currencies. Rather, risks arise because beginners pile on leverage to compensate for the fact that individual moves are relatively small.

This means that it’s easy for them to be wiped out by a few bad trades. So if you’re planning to dabble in FX [...]

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