risk involved in forex trading

[pkc3000]

Trading in the foreign exchange markets on margin carries a high level risk which may not be applicable for individuals. The high degree of leverage offered in the forex markets can work against incumbents . Before deciding to trade in foreign exchange markets one should carefully consider the objectives of investment, level of experience and risk of appetite. I want to know what type of risk is involved while doing forex exchange tradidng, can anybody throw light on the subject.

[rkbehera1]

The risk reward ratio in forex trading is better than trading in stock and equities.You have more time to settle your trade in your favor.Forex markets remain opened nearly 24 hours from Monday to Friday.Capital erosion is risk is already there.But keeping strict stop loss can save your capital in case the forex markets moves against your anticipation.