Trading Forex on margin can carry a high level of risk and it is also not suitable for all the investors coming into this trading business. In addition to that, it is also true that high degree of leverage can work for the traders as well it might also work against the traders.
The high degree of leverage associated with trading currencies means that the degree of risk compared to other financial products is higher.
The leveraged nature of forex trading means that any market movement will have an equally proportional effect on your deposited funds.
Therefore, it is always advised that investors should consider their objectives of investment, risk appetite and also the level of experience before finalizing to trade on any leveraged products. In this context, the possibility exists that you could sustain a loss of some or all of your initial investment. Thus one should not invest money which he/she cannot afford to lose while trading in forex.
Please ensure you fully understand the risks and carefully consider your financial situation and trading experience before trading.
If in doubt, it is advisable to seek independent financial advice.