Disadvantages and Drawbacks of the Forex market | Fx secrets tutorial in English by Tani

Disadvantages and Drawbacks of the Forex market | Fx secrets tutorial in English by Tani


Hello friends, I am Saba and I am from the new Forex. I hope you are all fine Friends over to this topic is about the disadvantages of the forex market in my previous video I have told you in detail about the advantages of the forex market Friends, it would be a biased evaluation of the forex market if attention was paid only to the advantages while ignoring the disadvantages Therefore in the interest of full disclosure. I will tell you in detail about some of the major disadvantages of the forex market Friends, number one from one of these is the counterparty risk – what is counterparty risk? French forex market is the international market in the whole world and It is the largest and biggest market Therefore regulations of the forex market is a difficult issue because it pertains to the power of the currencies of many countries Friends this creates a scenario where in the forex market is largely unregulated Therefore there is no centralized exchange which guarantees the risk free execution of trips therefore when investor or traders enter into the trade they also have to be aware of the default risk that they are facing that is the risk that the Counterparty may not have the intention or the ability to honor the contracts Friends, forex trading therefore involves a careful assessment of the counterparty risk as well as creation Of friends to mitigate them Friends, the number two or second disadvantage of the forex market is the leverage risk So I have already told you about the leverage What is leverage you can watch the video of the leverage for more detail? Let’s start again friends, forex market provides the minimum leverage The word leverage automatically implies risk and a gearing ratio of 22 Tea times or even 100 or 500 times implies a lot of risk Given the fact that there are no limits to the amount of movement Friends that could be happen in the forex market in a given day Friends, it is possible that a person may lose all of their investment in a matter of minutes if they placed highly leveraged bets Friends no wise or new investors are more prone to making such mistakes because they don’t understand the amount of risks that leverage brings along friends her third major Disadvantage is its operational risk. So what is an operational risk in forex? Friends, forex trading operations are difficult to manage operationally this is because the forex market works all the time whereas human do not therefore and Traders have to resort to algorithms to protect the value of their investment when they are away So alternatively multinational firms have trading desks spread all across the world Friends, they are all across the world. However, that can only be done if trading is conducted on a very large scale Therefore if a person doesn’t have the capital, but they know how to manage their positions when they are away Forex market could cause a significant loss of value in the knives or on weekends Friends, that’s all for today. I hope now you are aware of the major disadvantages of the forex market friends if you like this video Then please like comment and share it with your friends If you have any question in your mind, then you can ask in the comment section Thanks for watching the video stay blessed. Take care. Good. Bye

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