The Forex market is also fraught with risks like any other financial markets and has both advantages and disadvantages. Traders with good trading knowledge, and skills are able to make use of disadvantages to convert them in to profits. Professional trader knows how to take advantage of the volatility of the market to make money, whereas a rookie can drain his whole trading account.
Yes, high or low leverage both are risky only if you do not know what you are doing. Traders with good trading skills and knowledge make a good amount of profits.
Pro: Easy access: The Forex market spans many time zones and is vast. In spite of this, information about the Forex markets is simple to find. Less chance of market manipulation:Extremely flexible environment for traders, especially given that the market is open 24/7. Cons: Forex trading can be extremely risky. It is very volatile and changes rapidly.
In forex trading the pros of the market can become the cons and cons can becomes pros if you have good hold over technical and fundamentals of the trading.
Of course. That is why it is called “ the double edged sword.” You could lose all your money in the same way you can earn big profits. Always pick a leverage that you can handle.
Traders can make a good amount of profits if they understand the fundamentals of the market and are able to predict the future market movements properly. On the other hand, the forex market is highly volatile and sensitive that it is very difficult to predict the market 100% correctly.
Forex market is highly lucrative and risky market at the same time. The market is highly volatile and the traders who have excellent trading skills know how to take advantage of the volatility and make profits form it.
The pros are the availability of this market 24/5, the ability to trade using different methods and accordingly spend different amounts of time on trading, the ability to create your own work schedule, high liquidity, a variety of trading instruments, the ability to trade from anywhere in the world. The cons are high risks, complexity of analysis, psychological stress.
The forex market has several advantages, including high liquidity, which allows for quick trade execution, and the ability to trade 24 hours a day during the weekdays, providing flexibility for traders. Additionally, the use of leverage enables traders to control larger positions with a smaller amount of capital, and there are diverse opportunities with numerous currency pairs available for trading. However, there are also significant drawbacks. The high risk associated with leverage can amplify losses as well as gains, and the market's complexity can make it difficult to predict price movements accurately. The fast pace of trading can lead to emotional decision-making, and traders should be cautious of potential scams that exist in the market.
Negatives: Market maker model B booking, no centralized exchange to challenge if anything goes wrong , Extreme Leverage , most brokers regulated in tin pot countries ( low barrier to entry) , thinly regulated and if "Broker" goes belly up SIPC or AUS FSG wont cover you ( Uk is better than US and AUS)