Forex technical risks
In addition to the well-known risk of exchange rate changes, there are also a number of other dangers in Forex, the occurrence of
which creates the possibility of completely losing your deposit.
Moreover, if exchange rate risk is taken into account first of all, then other options for troubles are not always taken into account by novice traders.
Technical risks in Forex arise for a number of reasons beyond the trader’s control, and to prevent them, a number of preliminary actions must be taken in advance.
By spending just a few minutes, you will save your deposit from being completely drained.
These could be either equipment malfunctions on the trader’s side or problems arising in the work of a broker providing Forex trading services.
And so let’s move on to a detailed review of Forex technical risks.
1. Orders not being triggered - as a result of such a situation, you may not only not make additional profit if a pending order does not fire, but also lose your deposit completely if the stop loss does not work.
You can prove that you are right only by having a saved screenshot of the trading terminal screen. This action takes no more than one minute, and can save hundreds of dollars.
This also includes not triggering stops during a gap, or rather triggering with a delay only after the first quote appears. It is practically impossible to correct such a situation; it is easier to try to prevent it without trading when there is a high probability of a price gap occurring.
2. The trader’s terminal freezes – this also happens quite often; you cannot close an unsuccessful order, and in principle you have no idea what’s going on with your open position.
For some reason, such situations always happen at the most inopportune moment.
The solution may be to restart the computer, restart the trading terminal itself, or use alternative equipment. For example, I bought an inexpensive netbook for these purposes, only $200 and I don’t have to worry about system failures.
You should also not forget about such features as a web terminal and a mobile terminal on your phone.
If the situation does not require an immediate solution, you can simply restart the computer or restart the frozen terminal.
3. Hardware failure - this could be a simple failure of your operating system or a power outage.
In the first case, you can use the option described above (duplicate equipment), in the second, use uninterruptible power supplies, such a source costs only 40-50 dollars, and allows you to work autonomously without electricity for 10-15 minutes.
4. Requotes and slippages - in the first case, you receive a refusal to open a position, in the second, the position is opened, but at a completely different price. As a rule, it is no longer profitable for you.
In order not to encounter such phenomena, you should immediately work only with proven dealing centers , only in this case you will save your nerves and make a big profit.
Preliminary risk management allows you to almost 100% prevent Forex technical risks, and as you know, it is better to avoid mistakes right away than to deal with them later.