Risk Notice.
One of the reasons for the bankruptcy of Forex traders is inattention and a rather superficial attitude towards trading.
While studying the website of any Dealing Center, you will definitely come across such a concept as “Risk Notice”; this page of the website is subject to mandatory study. Forex Risk Notice - includes a set of rules for exchange trading and warns the trader about possible troubles that can lead to financial losses.
Sometimes reading this document completely discourages trading, but it is worth reading in any case; usually the link to the “Notification” is located at the bottom of the broker’s website.
As a rule, it contains the following subparagraphs:
1. Description of the effect of leverage - a warning that by increasing the amount of leverage you correspondingly increase the risk of losing your money as a result of currency fluctuations.
2. Technical risks - you will be warned that dealing centers are not responsible for all equipment failures and no one will compensate for losses.
3. Trading platform - rules for executing orders in the trader’s trading terminal and a description of cases when they can be rejected from execution.
4. Failure of communications - if you were sent a letter or message, but you did not receive it and as a result received losses, again you will be to blame.
5. Force majeure - if an earthquake or flood occurs, a plane falls on the company’s office, no one will ever return your money to you.
6. Legislation - if trading in certain financial instruments is prohibited in your country, you are independently responsible before the law.
In addition to the listed points, the Risk Notice may include some other points; the facts presented in this document sometimes actually occur, but still this does not prevent me from making money on Forex.
You just need to be more attentive and careful, avoid excessive risk and be prepared for various surprises - switch to Forex trading .