There are two basic classifications
risk: systematic risk - a risk that affects all currency pairs. Examples of
systematic risk are global political events, natural disasters or war.
Unsystematic risk - sometimes referred to as "specific risk". It only
affects a very small number of currencies and currency pairs. One example is
the economic news, the influence in a particular country or region, such as a
sudden strike by employees or a change in interest rate. Diversification across
multiple non-communication with each other standing in currency pairs is the
only way to really protect themselves from this danger.Now that we have
considered the two main risk classifications closer, let's look at several types
of specific risk.* Risk of default - this is the risk that the firm with which
they trade currencies, is unable to pay the balance, if you want his money
back. Many Forex traders remember the event at Refco in the spring of 2005. One
of the largest brokerage firms in the world went bankrupt. Parts of the company
were auctioned or sold. Unfortunately, the customers were not able to deduct
their profits to the brokerages were sold. Choosing a trustworthy broker is
better than most.
* Country risk - this refers to the fact that not one country does not fulfill its financial obligations. If this happens, it may harm the values of all other investment vehicles in this country. These are countries. affected pulled, which have strong economic ties with that country. Country risk also applies stocks, bonds, options, futures. But worst hit are the currency, issued by that particular country. This type of risk is often seen in developing countries or in countries that have a strong deficit.
* Exchange rate risk - if you are positioned in a foreign currency should also be observed in other currencies that are closely associated with their economic data, for example, affect the British pound, also have an effect on trade of the euro. If the pound adversely affected, one sees losses against the U.S. dollar, the euro will also be negatively affected. Maybe not to the same extent, but one thing is certain: he will not rise. Have to know what effect the currency pairs with each other, which you are trading is vital to the long-term success.
* Interest rate risk - changes in interest rates during all open trades affect the amount you get paid per day or is close to the trade. In an open position until the following day, every day there is a rollover, where depending on the position of a credit or debit on the account gets. This depends on the rate of the two countries currencies. If you sell the currency with the higher interest rate, you get charged the daily interest that has calculated the broker. Have you bought the other hand, however, that currency, interest rates are available these days and you get a credit.
* Political / economic risk - this is the danger when government changes, revolutions make it necessary to re-assess a country if it is as fast possible. Since this is generally not the case, it causes immediate and drastic changes in currency rates where this country is one thing. Another example of this risk, government intervention, which we usually see in Japan. There is attempting to provide low currency prices to resort to export under the arms.* Market risk - the most trusted and the only danger of short-term traders. Market risk refers to the daily fluctuations in the price of a currency pair. Also referred to as volatility, an effect of certain market forces. It is a measure for the risk of each position is exposed. Because fluctuations are the reason that everyone has the opportunity to make money, the greatest possible volatility is important for this opportunity. The more stable a currency is, the stronger the movement in any direction.
* Technology-risk - now they ask yourself, what does this mean? It will only be traded online, according to a working system is essential for survival. What do you do when the online connection fails? Do you have an alternative Internet service? A second PC is present if the first fails?Is the phone number in the vicinity, to close the position quickly? If Yes, you can get by at all?
* Risk of misusing - here they are the source of errors. Have you ever opened a position and were right, your balance has been reduced but always? then you simply have the wrong key. They were distracted, were nervous, were not looking and then something like this happens. They wanted the market quickly, because there was a rapid movement, which was run on and they did not want to look after. It happens to everyone, it happens the best, it happened even at a public event. Aschaffenburg is held every year in an event, act live on stage at the commuters. They wanted to close a position and it has doubled instead. It would have been sold at the top - that was one day gone the long and has realized it too late.It went down and made a profit of 200 €, 50 € for the day lost in this one position. So it can go, it will always come back so if you're not careful. It is hoped that the market comes back. But just then he runs like clockwork further against you.As you can see, there are some kinds of risks that make life difficult for a dealer and he has to dedicate special attention. Decide how much potential profit, while you have to respect the risk is one of the main tasks of speculation.
* Country risk - this refers to the fact that not one country does not fulfill its financial obligations. If this happens, it may harm the values of all other investment vehicles in this country. These are countries. affected pulled, which have strong economic ties with that country. Country risk also applies stocks, bonds, options, futures. But worst hit are the currency, issued by that particular country. This type of risk is often seen in developing countries or in countries that have a strong deficit.
* Exchange rate risk - if you are positioned in a foreign currency should also be observed in other currencies that are closely associated with their economic data, for example, affect the British pound, also have an effect on trade of the euro. If the pound adversely affected, one sees losses against the U.S. dollar, the euro will also be negatively affected. Maybe not to the same extent, but one thing is certain: he will not rise. Have to know what effect the currency pairs with each other, which you are trading is vital to the long-term success.
* Interest rate risk - changes in interest rates during all open trades affect the amount you get paid per day or is close to the trade. In an open position until the following day, every day there is a rollover, where depending on the position of a credit or debit on the account gets. This depends on the rate of the two countries currencies. If you sell the currency with the higher interest rate, you get charged the daily interest that has calculated the broker. Have you bought the other hand, however, that currency, interest rates are available these days and you get a credit.
* Political / economic risk - this is the danger when government changes, revolutions make it necessary to re-assess a country if it is as fast possible. Since this is generally not the case, it causes immediate and drastic changes in currency rates where this country is one thing. Another example of this risk, government intervention, which we usually see in Japan. There is attempting to provide low currency prices to resort to export under the arms.* Market risk - the most trusted and the only danger of short-term traders. Market risk refers to the daily fluctuations in the price of a currency pair. Also referred to as volatility, an effect of certain market forces. It is a measure for the risk of each position is exposed. Because fluctuations are the reason that everyone has the opportunity to make money, the greatest possible volatility is important for this opportunity. The more stable a currency is, the stronger the movement in any direction.
* Technology-risk - now they ask yourself, what does this mean? It will only be traded online, according to a working system is essential for survival. What do you do when the online connection fails? Do you have an alternative Internet service? A second PC is present if the first fails?Is the phone number in the vicinity, to close the position quickly? If Yes, you can get by at all?
* Risk of misusing - here they are the source of errors. Have you ever opened a position and were right, your balance has been reduced but always? then you simply have the wrong key. They were distracted, were nervous, were not looking and then something like this happens. They wanted the market quickly, because there was a rapid movement, which was run on and they did not want to look after. It happens to everyone, it happens the best, it happened even at a public event. Aschaffenburg is held every year in an event, act live on stage at the commuters. They wanted to close a position and it has doubled instead. It would have been sold at the top - that was one day gone the long and has realized it too late.It went down and made a profit of 200 €, 50 € for the day lost in this one position. So it can go, it will always come back so if you're not careful. It is hoped that the market comes back. But just then he runs like clockwork further against you.As you can see, there are some kinds of risks that make life difficult for a dealer and he has to dedicate special attention. Decide how much potential profit, while you have to respect the risk is one of the main tasks of speculation.
Taken from:
Comments:
1.
in any business there would be a risk that we
get, but all that will fit with a possible reward we get in that business.
we just need to learn any business that we do well, so we will have the right strategy to minimize and limit the risk that we get.
we just need to learn any business that we do well, so we will have the right strategy to minimize and limit the risk that we get.
2.
Forex just like any other business, but I
believe forex at high risk. many strategies that can be profitable and to
minimize the risk. You can try several strategies to compare with other
strategies, choose a strategy that fits with your trading character
3. In the definition of business we
know that every business is included with risk. If we want to do well in forex
business we have to take risk by doing analysis. We have to to learn forex
business for doing well and we should have the correct strategy to reduce and
bound the risk.
4. There is no business in this world
without risk . There are different types of risks you have explained in the
article but in my view most dangerous one is country risk. Because if there is
a war betweeen the countries then there is no gurantee that what will be the
conditions of the country after war. Iraq is still facing problems in currency
even after a long time stoppage of war.
***
Pertimbangkanlah secara matang bila anda akan memulai trading forex. Forex trading memiliki tingkat resiko yang sangat tinggi. Anda bisa kehilangan dana dalam jumlah besar bahkan hingga seluruhnya. Kami tidak bertindak atas nama pialang berjangka manapun dalam melakukan trading forex.
