new to forex, page-4

  1. 284 Posts.
    The risks can be greater and the rewards can be greater.

    I presume you are refering to leveraged trading. GFTForex and others offer this.

    You put up, say, $5000 and then you can take positions usually at 100x ($500,000). That means a 1% swing wipes you out. Even if you trade at 10x then a 10% swing can wipe you out.

    Leverage = death. As you can see from my example. Look at any 5 year currency chart, eg AUD/USD or EUR/USD. How often do currencies swing by up to 10% quickly? Often enough to make leveraged forex trading just like roulette.

    The people on the other side of your trades are often bankers or fund managers. Some of the most sophisticated traders in the world. Do you really want to be up against that?

    Unleveraged sharemarket is comparatively much safer than leveraged FOREX. Leverage kills.
 
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