Why is risk inherent in forex?

[Potuse]

Understanding the risk that is attached to forex trading is instrumental to making success because risk is inherent in forex trading and you must understand how to maneuver so that you can enhance your risk tolerance.

 

[Planbizzle]

Because of the extreme swings of currency exchange rates, foreign exchange risks are inevitable in forex trading. Forex traders buy and sell currencies in order to make a profit from fluctuations in currency exchange rates. Yet, these rates can shift swiftly and abruptly, making it impossible to forecast currency pair fluctuations.

 

[Treborika]

The risk is very inherent in the Forex trading. It's quite difficult to predict on the performance of the currency yet there are often more circumstances that can lead the occurrence of the losses in the system of trading.

 

[Nomad]

Forex is an extremely volatile market, therefore, it is considered very risky. The prices of currencies fluctuate every second and if a lot of money is at stake you can become rich or poor in no time

 

[Syldan]

Risk is an inevitable happening in all kind of business and it's more occurring in forex, simply because it's very difficult to predict the level of profitability in any cost of trading.
Forex is a kind of business that can not be predicted.

 

[hastral45]

Forex too carries risks along with it. Forex is an institution that its capital movement cannot be determine. It could either go upward or downward. Forex could make you fortune or turn you into wretched.

 

[Busybee]

There are so many factors that affects the forex and hence the risks are also more.

 

[Mostee501]

Risk is inherent in forex trading due to several factors such as volatility, leverage, global factors, market liquidity, technical issues, market manipulation. Setting stop-loss orders, diversifying their portfolio, and carefully managing leverage, to mitigate potential losses.