10 Things You Should Beware of During Currency Trading

* Watch out of those who guarantee large profits.
* Stay away from those who promise no financial free
* Beware of those everything sounds very easy.
* Don’t trade on Margin unless you have been trained
* Please take cautious to online/phony transferring cash in online trading
* Make sure its really interbank market
* Job offer as Account Executive might lead you to use your money for currency trading
* Need to ensure the company background
* Avoid those company who won’t let you know their background
* Don’t fully trust any agency or broker, put some effort to understand currency trading by yourself.


Risks Accessment Consideration
Trading currency exchange will carry certain level of risk which may not be fitting all investors' appetite. Prior to trading, investor should take consideration of their experience level, monetary objectives, financial management plan and risk-bearing.

Credit risk
Due to intended or unintended action by counter party, an outstanding currency position may not be paid off as agreed due to voluntary or involuntary action by counter party.

Replacement risk
When you cannot get refund from the counter party and induce your account deranges, instantly clear off your books to hold the currency price rate.

Settlement risk
Due to different prices at different time zones between you and your counter party, transaction payment might possible to be declared not enough money before payment is executed.

Exchange rate risk
Variation of currency rate is due to the worldwide market supply and demand. Price changes may bring to loss from profitable position.

Interest rate risk
Because of variation of currency rate, in forward spread , there might be some maturity gaps and transaction mismatch.

Dictatorship risk.
Dictatorship (sovereign) risk refers to the government's interference in the Forex activity. Ttraders have to realize that kind of the risk and be in state to account possible administrative restrictions.

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