Things every trader should know before trading the Forex Market

The Foreign Exchange market is a very lucrative and, at the same time, a dangerous market. Several journals showed that every day there are six trillion dollars are being transacted here. So, it is possible to make profit from such a large market, but it’s not that easy.

There are many examples that many people have gone from zero to billionaires in this market, and the number of people who have become destitute is not small. Success stories in this mysterious market can be found in every corner of the internet, in the pages of books, but you will not find failure stories that way. So, without judging the good and the bad, many people rush to trade in Forex with high hopes and dreams of profit.

Today’s article is written for them. Here we discussed some of the advantages and disadvantages of Forex. Considering its pros and cons, we should start trading in Forex.


  • Low investment: You do not need a lot of capital to start trading. Some brokers will let you trade for just 5. However, experts say that even if you start with 100, there will be nothing to say profit. They suggest starting to invest with at least 1000. However, the higher the investment, the higher the payoff is.
  • Liquidity: Forex is the most liquid market. A lot of traders here trade a massive number of currencies daily. The amount is not less than six trillion. So here, making a profit is not impossible at all. For more info about the market liquidity, visit the official website of Saxo and enhance your knowledge by using their free resources.
  • Home business: Like other businesses, you do not need an office to trade in Forex. And where there is no office, there is no need for any decoration. So, you can save a large amount of money which you can invest in the Forex market.
  • You can trade from home, even lying on the bed. All you need is a laptop or at least a smartphone.
  • Leverage: If you feel that the capital you have is not enough to trade. What will you do? You will take a loan. But FX brokers will free you from this hassle.
  • They will give you some extra currency to trade at a very low rate with which you can trade big. This is called leverage.


    1. Price Fluctuation: Since Forex is a liquid market, the value of its currency can go up or down at any time.So, traders have to be quite tense. They always have to keep their eyes on their devices to identify the sudden price movements in the currency pairs. 
  • The threat of Loss:Many experts and journals have agreed that 90% to 95% of traders cannot be successful. Since the success rate in FX is meager, the risk of losing is very high. Your trading career may end with a very little mistake. So, a trader needs to be very much careful all the time.
  • Adverse for the newcomer: Forex is risky for every trader, even for the older ones, let alone the newcomer.
  • The beginners come here and make one mistake after another and stumble.
  • There is no benefit in reading many articles or books about FX if you do not have experience.
  • However, if you can survive, you can become successful one day.
  • Risk of being hacked:  One of the biggest fears of Forex is that hackers can come and empty your account before you know it.If all your hard-earned money goes into the hands of others, it won’t be easy to survive.  So, traders always have to be careful to avoid being hacked due to any slight mistake.

Here we have depicted some significant pros and cons. There are some other advantages and disadvantages too. By counting on them, you have to decide whether you do trade in the FX market or not.

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