4 Important Things about Forex Trading to Stay Safe and keep Your Money Secure
No doubt, Forex Trading has lots of unique advantages; there is a couple of things from which a forex trader has to be aware of while trading in forex market. I will not say that these are disadvantages or cons of forex market, but these are just the things which we have to take care of while trading forex. I have provided the list below with the solutions by which we can safely and securely enjoy our forex trading.
4 Things, You Should Be Aware of while Trading Forex
1. Forex Market is Decentralized –
This is the unique point which works both ways. Decentralization means there is neither central governing body nor any central clearing houses to guarantee the trades or to adjudicate trade disputes. However, forex market being decentralized is running very smoothly and is controlled by many participants, who act as market makers and liquidity providers. By trading forex with any bank or broker, we can actually say that we are directly trading with them only on the basis of an agreement between us. If there is any trade dispute, it will be first cross checked as per the bank or forex brokers predefined set of rules and terms and conditions, after that with any third party regulation or authority. It is because of this decentralization; we are able to enjoy high leverage as much as 500:1 along with many other benefits from forex brokers.
There are many regulatory bodies which provide assurance that we are trading with a reliable forex broker, and our funds is secured. These regulatory bodies have a set of rules and terms and conditions, which the forex broker has to follow in order to get the reliability certificate from these regulatory bodies. We can always trade without any doubt by selecting the proper forex broker who has a certificate of a regulatory body.
2. Volatility –
Forex Market being the most gigantic speculative market in the world is also the most volatile market at the time of any important breaking news or at the time of some financial figures announcement. We can use this volatility both the ways; we can either profit from them by creating a trading strategy or lose our capital by trading unknowingly at the times of volatility.
Forex Economic Calendar is freely available online to all forex traders and as so a forex trader can utilize this forex trading tool to be aware before handed and safeguard their live positions. To stay protected from any breaking news, a trader can always put a stop loss with his trade so that he would not face any losses which he cannot afford to lose.
3. Do not trade with any Forex Bucket Shops -
Forex bucket shops are the forex brokers who are at the opposite side of your forex trade which means your loss is their profit and such forex brokers mostly do not have any certificate of any regulatory authority as so they can easily manipulate the forex price and/or widen the spread to eat your profits and/or freeze the forex trading platform at the times of most profitable moments. If luck by chance you are profitable, then there is still no guarantee that you might get to withdraw your funds at the time you desire. Such forex brokers generally attract traders by offering huge bonuses and rewards.
no matter whatever promotion or rewards a forex broker might offer, stay away from the forex broker who is not under any regulation authority.
4. Forex Scams, Dummy Forex Expert Advisors, Forex Earnings Hypes –
Forex trading market is so huge and has the enormous earning possibility as so there are many people who misguide novice investors and traders by showing them huge profit sheet and/or some kind of fancy indicators/software’s and/or some kind of investment scheme.
always keep in mind, the past performance of any trading system or methodology is not necessarily indicative of future results. Before buying any indicator or software and/or before participating in any investment scheme, kindly ask for the guarantee and/or assurance of your funds safety and/or authentication of their profit sheets and also as many questions, which you can think of being safe.
I have provided the solution for all the things which can act against a forex trader while trading forex. By properly selecting the forex broker and staying aware at the times of important news events, we can easily bypass all these factors.
From my point of view, I enjoy forex trading, and till today I have not faced any issues regarding the security of my funds.
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