When you delve into the world of Forex trading, risk warnings are ubiquitous!
For good reason, as Forex trading offers high profit potential at high trading risk. This is really a no-brainer, as the profitability of any investment is always proportional to the level of risk involved. Savings account? Treasury bonds? These are “safe” investments, offering the most meager returns, at the lowest risk available.
Even so … banks holding people’s savings have been known to go broke. And more recently, the threat of governments defaulting on their debt have made treasury bonds a somewhat more risky investment than in the past.
Forex trading offers returns with monthly interest rates higher than annual interest in any other investments, stock market, real estate, brick-and-mortar business … you name it. Of course the risk involved is likewise much higher than for other investments.
But all those risk warnings you read in the world of Forex and CFD trading only refer to one type of risk: the actual trading risk. That is not the entire picture when considering the risks involved, starting from the moment you deposit your funds until the moment you withdraw your profits:
RISK IN FOREX TRADING:
Click each item to learn more about these risk categories!