Trading foreign currencies can be an interesting and potentially profitable opportunity for investors. However, before deciding to trade in foreign currencies on the Forex Market, you should carefully consider your investment objectives and your level of experience as well as consider how risk adverse you should be.
You should never invest money you cannot afford to lose.
Foreign exchange transaction can come with high levels of risk, this includes but may not be limited to, the potential for changing political and/or economic conditions substantially affecting the price or liquidity of a currency. Market fluctuation can result in sharp rises and falls for investments in foreign exchange speculation.
Where you are trading on margins, the leveraged nature of that Forex trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. Where you operate higher risk strategies you may lose the entirety of your investment.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. Any indicators of past performance, including your own past performance or that of others is not indicative of future results.
It is possible that you may lose some or all of your initial investment and therefore you should never invest money that you cannot afford to lose.
You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.