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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