Advantages and Forex Risk Management

Of course for all Trading instruments still have their respective Advantages and Forex risk management, and none of the purely instruments can be used as Safe Heaven. Moreover for Forex which has "Pair" trading instrument.

Paired here commonly referred to as "Pair", where the mention of the currency pair has a stronger currency rules are in front. Because it is called by trade or exchange, of course there must be 2 interrelated instruments. For example, EUR / USD, If we buy EUR directly we will sell JPY at the rate of the pair, and vice versa.

Overall, there are at least 8 most commonly traded currencies in the Forex market, or we usually call them "Major". Here are some Major currencies along with the nicknames that the currency has:

• USD - US Dollar - Greenback - Buck
• EUR - Euro - Single Currency
• JPY - Japanese Yen
• GBP - Great Britanian Pounds Sterling - Cable
• AUD - Australian Dollar - Aussie
• NZD - New Zealand Dollar - Kiwi
• CAD - Canadian Dollar - Loonie
• CHF - Swiss Franc - Swissy

The aforementioned currency will then be extended to each other by the most widely traded rules placed in the world on the front.

Actually, there are some other unusual pairs, or commonly called "Exotic Pair" like USD / SGD (US Dollar / Singapore Dollar). But trading for exotic pair is very rarely done by market participants, so that price fluctuations are not too bear.

After we discuss a little about Forex Instruments, let's move to discuss the Advantages and Risks Foreign Exchange for trading activities that do not cause regret in the future.

Excess of Forex

Forex has the same principles as other trades that exist in the real world, as well as in other virtual worlds. However, the Forex market has advantages that can be an "Edge" to get big profits in a short time.

24/5 Non Stop

Currently, only two currency markets are running 24 hours non-stop, the Forex Market and Crypto Market which has recently become a trending investment and trade. With 24 hours trading time, we can set our own schedule to participate in the market freely.

Free market

In the Forex market, of course we are freed to act in accordance with our own beliefs without any restrictions. We can also reap the benefits of two directions, meaning that when prices rise or fall we can still generate profits during the expectations that we do right.

High Liquidity

With a market that is always active to produce an active price fluctuations as well, so it could be advantage / loss can occur in just a matter of seconds.

Leverage

Leverage here serves as a leverage fund where with relatively small capital, market participants can execute orders that require a larger margin.

Demo Account

If the first practice of trading can only be done with "record and pay attention" without a real action. Unlike the current where Demo Account with a real market and transaction execution action can be done. Thus, forex trading exercises can be done without the cost of a penny.

Forex Risk

In fact, the risk in the Forex world is just the opposite of the above advantages, but still we will try to explain in more detail, so that the comparison becomes more clear.

Vitality

With increasing Volatilas and Price fluctuations, it is not just the benefits that can be gained instantly in a short span of time. However, large losses can even be obtained instantly if the calculation is done wrong.

Leverage

Leverage here can be likened to "Double-Eyed Knives", where small capital will have the ability to execute orders above the ability of the fund. It's true that big profits are gained, but the risk of big losses can also occur.

Forex Broker

Risks to Brokers (Broker / Third Party) of course exist. If you choose any Broker, of course the risk of losing deposit funds may occur. Especially at this time a lot of cheap brokers who already ran a lot of funds from customers. Thus, the most appropriate way to do is to choose a certified broker, or a trusted local broker.

Personal Self

Why a trader's Personal becomes a big risk ?, Because basically all trading activities must be based on a broad knowledge. If a trader does not have the proper "science" in Forex, not a beautiful dream of a "Holy Grail" or financial freedom gained, it is a nightmare of bankruptcy that will come.