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Forex Newbies should know these Things | Tradesto Review

November 16, 2020

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Forex Risks You Need to Know | Tradesto Review

While the foreign exchange market is tempting enough to earn high profits, there are certain risks too. It is important to know about the risks in forex to maintain your profits. Tradesto , Not having a knowledge of these forex risks may cause you losses in the trade. Below you can find 5 forex risks that you need to know. 1. Risk of Settlement Time zones differ in different continents. This difference in time zones results in the settlement risk. Due to this, the currencies get traded at varying prices at different times in the same day. 2. Risk of Interest Rate The risk of interest rate means the fluctuations in spreads that cause profits and losses. To reduce the risk of interest rate, forex traders should place a limit on the size of mismatches. 3. Risk of Exchange Rate The exchange rate risk in forex arises with the change in currency value. This change is due to the shift in demand and supply balance all over the world. 4. Risk of Credit Cre...

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