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Forex markets are considered to be high risk and volatile markets due to high leverage used by traders. High leverage may result in heavy losses if the market moves in the opposite direction to a trader’s position.
Forex Markets are highly sensitive to news and developments resulting in excessive price movements during these times. Volatility may result in heavy losses before or after an important development which may have an effect on markets.
Since forex markets are open five days and 24 hours, traders who do not follow market movements closely may be subject to heavy losses.
