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Forex High-Risk

The simple and probably most useful answer is “yes”.

But, like all things, when it comes to sophisticated financial instruments, there are caveats.

The thing is, Forex is quite broad. And in many cases, it is used as a way of mitigating risk. When people are asking about Forex, though, usually, they are thinking about online retail forex trading, and that is its own thing.

In its most basic form, Forex is simply buying and selling different currencies. The risk associated is when those currencies change value.

Generally, these are very small market moves compared to stocks, especially when we are talking about the major world currencies, such as the pound, dollar, euro, etc.

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So, Where’s the Risk?

The reason retail forex trading is generally considered a high-risk investment is that its primary appeal is the ability to invest with margin. And a lot of margin at that!

That’s when your broker lo...

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