Friday 11 January 2019

14 Disadvantages Of Forex Trading

1. Lack of Transparency 2. Leverage Risks: Forex markets provide the maximum leverage. 3. Price determination process: The process of price determination process in foreign trade exchange is often considered to be complex because of the complex price determination process. 4. No Centralized Exchange 5. 24/7 Trading Market Risk: While markets being open around the clock opens the door to new and potentially exciting opportunities, it can also mean you have a much greater market risk to absorb. 6. Self- Directed Learning: In the stock market, a trader can seek professional assistance from portfolio managers, trade advisors, and relationship managers. Forex traders are completely on their own with little or no assistance. 7. Operational Risks: Forex trading operations are difficult to manage operationally. This is because the Forex market works all the time whereas humans do not. 8. High Volatility: The high Volatility characteristics of the Forex trading can either be an advantage or disadvantage. 9. Social Trading 10. Interventions: Currency markets in particular are also subject to interventions from governments and central banks that cannot be controlled by traders and in some instances are not publicly declared to traders.

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