Are there any risks involved in Forex Trading?
Please remember that the Forex market is a high-risk and highly volatile market. In situations where there is low liquidity in the market and/or high volatility, the clearing department decreases the level of leverage available for a short period of time. Due to this decrease in leverage some customer positions that have high exposure at that time are automatically closed. Please note that each person trading in the market is responsible for the amount of positions open at any given time as well as the leverage ratio at which he or she chooses to trade. In extreme circumstances, this can require adjustment in order to respond to fluctuations of the Forex market. This is especially true in a case where you are trading exotics or crosses pairs. These are generally the first positions to close when the clearing department reduces the amount of leverage in the Forex market. We recommend that in situations like this, the customer re-opens their position at a smaller lot size.
