With higher than normal volatility in most financial markets at the moment, it's worth reviewing your risk controls and money management. Here are 7 easy tips that will help to lower risk when trading foreign exchange and any other market.
Drawdown happens when losses in a trading account outweigh profits over a certain period. If you trade in any kind of volatile instrument, some drawdown is inevitable and is one of the risks associated with putting your money into financial markets.
There are many different markets that can be traded in to make a profit. The largest of any of them is clearly the foreign currency exchange, also called Forex (FX). This market trades more than three trillion dollars each day and currency traders can learn how to pull in a share of it.