Risk management

Risk management

Risk management is a prerequisite approach to manage investments. The strategy involves identifying, assessing, and mitigating threats that could impact investments and trading activities, leading to potential losses. Risk management strategies follow a comprehensive analysis of the various hazards that could determine the outcome of your investment. While risk management protects investors to a large extent, they may not eliminate them entirely. Some of the risks in FX trading include

  • Market risk
  • Counterparty risk
  • Exchange rate risk
  • Interest rate risk
  • Country risk
  • Liquidity risk
  • Leverage risk