WHAT ARE THE OPPORTUNITIES AND RISK IN FOREX TRADING? WHAT IS THE BEST TIME TO TRADE?

The forex market is an international exchange currency market, where currencies are exchanged on a daily basis. There are five forex market centers around the world — New York, London, Tokyo, Frankfurt and Zurich.

In today’s world, people started trading from their home using a pc and internet connection.People starts trading to earn some extra income to their daily life.Due to this, they start trading daily and after gaining more knowledge about it they can even become a professional trader and own it as a new business.

In Forex you are operating big sums of money, and it's always possible that a trade will turn against you. The Forex trader should know these tools so that it helps for careful trading and minimizing losses. It's possible to minimize the risk but no one can guarantee eliminating it.


Some risk factors are as below:

There's risk of losing your whole investment!

If the price moves in an unpreferable direction, high leverage can bring you large losses compared to your first deposit. That's how a small move against your position may become the reason for a large loss, and even the loss of your entire deposit.

The market sometimes moves against you!

It's impossible to guarantee how exchange rates will move, and the Forex market is quite unstable.

There is no main marketplace!

The Forex dealer determines the execution price, so you are relying on the dealer's honesty for a fair price. As unlike adjusted futures exchanges, in the retail off-exchange Forex market there is no main marketplace with lots of buyers and sellers.
There's a risk of the trading system break down!
Sometimes a part of the system fails if you are using an Internet-based or any electronic system for executing trades. The result of a system failure may be a loss of orders or order priority.
So, beware of these risks in forex trading.

Forex markets work 24 hours. It starts from Sunday 5 pm EST through Friday 4 pm EST and rollovers at 5 pm EST. There is never a cease down in the forex market. When its day for you, its night for someone else. Markets close somewhere and simultaneously, markets open somewhere else. This offers traders this tremendous opportunity to make some serious money.

Forex market is characterized by high liquidity and high flexibility and as such traders get the freedom to make choices as per their wishes.

There are two times when two of the major markets overlap during the trading hours-between 2 am and 4 am EST (Asian/Europe) and between 8 am to 12 pm EST (European/N. American). This is the time you have to target to make profits, the best time to trade the forex markets.