Blog- ShriFX
  • You can lose all of your capital - leveraged forex trading means that both profits and losses are based on the full value of the position.
  • Risk of account close out - market volatility and rapid changes in price can cause the balance of your account to change quickly, and if you do not have sufficient funds in your account to cover these situations, there is a risk that your positions will be automatically closed by the platform.
  • Currency pair correlations can increase the interest rates outside of major forex pairs.
  • Market volatility and gapping - financial markets may fluctuate rapidly and gapping is a risk that arises as a result of market volatility, and one of the effects of this may mean that stop-loss orders are executed at unfavourable prices.

Risk of carry trade.

Central bank decisions can have an effect on interest rate levels.