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  Latest
Make Money in Forex by Avoiding These Psychological Risks May 24, 2022
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Risk

Mira Team by Mira Team
January 13, 2021
in Forex Terms
Reading Time: 1 min read
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Definition – What does Risk mean?

Risk is the possibility that a trade or trading position will have a different outcome than the one desired by the trader. There are many ways to measure risk in forex trading as it applies to the value of a trade or a trading account. A forex trader can measure risk by the percentage or account value exposed to the trade, the dollar value of the trade before the stop loss is triggered and so on.

ForexTerms explains Risk

Risk comes in many flavors. The common usage for forex traders is the risk of losing money on a trade or not making as much money as planned. This risk can be summed up as uncertainty, and it has to be balanced out with the potential of a reward to make the trade worthwhile. That said, the forex market and forex traders are impacted by various risks, including political risk, exchange rate risk, interest rate risk and so on.

ⓘ Mira FX is not liable for any damage or loss, including but not limited to, any loss of investment, which may be based either directly orindirectly on the use of or reliance on such information. Before deciding whether or not to take part in foreign exchange or financial markets or any other type of financial instrument, please carefully consider your investment objectives, level of experience and risk appetite.

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