Originally Posted by SnerpGoodWord
FX is not a risky market any more so than most others. In fact, the arbitrary position sizing for ECN/bucketshop spot FX makes it much less risky than most futures markets. The 24 hour liquidity helps too since it makes stops a more effective means of risk control. The only downside of the market from a risk perspective is the poor availability of exchange-traded options for hedges.
The issue with FX is that the majority of the business takes place where the typical retail trader can't see it. Most FX transactions are interbank, and many retail FX platforms provide essentially no volume information whatsoever. Combine that with the standard bucketshop tendency to mess with the price quotes, and the data feed situation is very bad.
I think that this is a very good point.
In any market there IS risk involved. That's a given. With the right strategy you can make money. An easy example would be playing poker. There are people that make money playing poker every day. BUT they take time to learn the game.
FX is the same thing. You have to learn how f/x trading works. If someone were to tell you that there is NO risk, run. You are putting money into something that is outside of you control.
So my question for you is are you looking to get started? What level of understanding do you have with forex trading?
Hope this helps.