1) Highly unpredictable: Since the exchange value of a currency pair is dependent on several factors, it is extremely difficult to predict the course of the market.
2) High losses: As investors can trade with large amounts of cash due to the high leverage offered by brokers, they can suffer substantial losses.
3) Extremely volatile: The forex market is extremely volatile, with the exchange value of a currency pair changing several times within a trading day. A novice investor might get flustered with the volatility and suffer huge losses.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment