How high are the risks in Spot FOREX trading?
The risks can be high but also manageable. How are they manageable? By using proper money management techniques where stop loss orders are placed at the time of a new trade entry. Under normal market conditions, our stop loss orders will be honored by the FCM and are automatically triggered if a trade does not go in our intended direction. In addition, we limit the risk to a clients account equity on any one trade based the investment product that the client has chosen. The client can access his/her account activity online in real time, in addition, the FCM will email a daily account statement depicting all trading activity. At any point, a client can direct the FCM to halt trading activity and close out the account for any reason. This does provide the client with a reasonable degree of control. However, it is important to remember that Spot FOREX trading is speculative and any capital used should be considered risk capital.
