Forex trading is challenging and complex, and experienced traders can profit from it. However, before deciding to enter the foreign exchange market, you should carefully consider your investment objectives, level of experience and personal tolerance of the risks involved.
More importantly, you should realistically measure your investment ability and don't spend all your money on investment.
Any foreign exchange transaction has a very significant risk. Currency-related transactions will be subject to risks including, but not limited to, potential changes to the political environment and the economic conditions of the particular currency. Such changes may have a significant impact on the price or liquidity of a particular currency.
In addition, foreign exchange trading is essentially a leveraged transaction, that is, various market dynamics may affect the funds you deposit. However, leverage will always have a direct impact on your personal choice. Your personal decision may be bad for you after being influenced by leverage, but it may also be your personal advantage.
You may suffer a total loss of initial margin and may require additional margin to maintain your position. In the event that you are unable to establish a margin call within the stipulated time, your position will be closed and you will be responsible for the associated risk loss.
Investors can use a variety of hedging strategies to reduce risk, such as “stop” or “Limited” orders.
The foreign exchange market is the most liquid in the world's largest and existing financial markets. At any time, the macroeconomic strength of the global economy is the main influencing factor of the current real-time monetary value of foreign currencies, so its different development trends are most easily identified by observing various monetary methods.
Therefore, for active investors, the foreign exchange market is a very attractive option and is theoretically the market most likely to succeed. But successful traders are limited by a number of factors, including but not limited to, many initial traders' unrealistic expectations of profit potential and the lack of trading principles that are necessary to become a good trader.
Short-term trading is not suitable for amateur investors. For most people, short-term trading is not a way to get wealth quickly. Although the foreign exchange market has its own unique characteristics, investors' familiarity and experience in the foreign exchange market are not directly related to traditional financial markets (ie stocks, futures and other financial markets, etc.), which does not mean investment. Those should ignore basic financial rules and simple logical judgments.
Investors can't expect to get high-yield profits without facing any risk. Doing so can result in unstable trading performance, and often investors have to bear high losses. Currency trading is not simple, and many traders often suffer losses with years of experience. Investors must understand that it takes time to learn foreign exchange transactions to be competent, and there are no shortcuts in the process.
The most attractive feature of Forex trading is the use of high leverage. Leverage is very attractive for traders who expect to get high yields with small initial capital in a short period of time.
But leverage must be seen as a double-edged sword. On the one hand, a one-hand currency transaction (US $10,000) may only require a minimum investment of $100. But this does not mean that the $1,000 transaction amount can easily generate a relative ten-hand gain. The first hand is worth $10,000, so the value of the ten hand is equivalent to $100,000 instead of the initial capital of US $1,000.
Most investors conduct technical analysis and/or fundamental analysis and then place orders (for trading) at their own discretion. Unfortunately, these investors are also exposed to the risk of over-using leverage (ie, the size of the position is too large to exceed the capacity of their portfolio). The immediate consequence of this situation is that investors are often forced to close many trades at the wrong time.
For example, if your account value is $10,000 and your pending order is $1,000, then your actual leverage is 10:1, which is already a fairly high leverage. Most professional financial personnel will not exceed 3/4 times the leverage ratio.
In Forex trading, if you use a growing amount of trade control and use stop orders to protect your position, you will have a greater chance of success.
Since the MetaTrader 4 platform is provided by a third party, our Atcfx may not be able to fully control and limit the operation of the platform. Traders trading on this platform may face systemic risk issues directly from the Atcfx communications infrastructure/or to the electronic trading system connected to it.
Due to a system failure or other disruption, the order may not be able to place an order as directed by you, or it may not be executed at all. In addition, due to system failures or other disruptions, you may not be able to issue instructions to modify orders or view your trading positions or market data.
Since the electronic trading platform is provided by a third-party vendor, Atcfx is not liable for any loss or damage directly caused by the performance of the use, operation or electronic trading system without legal precedent.