which market is less risky?

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Aishwarya
341
Aishwarya  
which market is less risky?
Sergey Golubev
Moderator
116976
Sergey Golubev  
No market is less risky sorry
Moses Olawale  Ajayi
2180
Moses Olawale Ajayi  
Aishwarya:
which market is less risky?
All markert carries risk. Anything can happen at any time.
Ronnie Mansolillo
6541
Ronnie Mansolillo  
risk depends on your personal strategy. leverage,time frame,indicators,money management,stop loss/take profit,trailing stop and others. each of them changes risk.
Mirza Baig
3201
Mirza Baig  
All financial markets are risky. But forex is a high-rewarding as compared to the others. You can easily reach 100% or even more of your account balance (your original investment).
Documentation on MQL5: Standard Constants, Enumerations and Structures / Environment State / Account Properties
Documentation on MQL5: Standard Constants, Enumerations and Structures / Environment State / Account Properties
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Standard Constants, Enumerations and Structures / Environment State / Account Properties - Documentation on MQL5
Ronnie Mansolillo
6541
Ronnie Mansolillo  
Shunmas:
All financial markets are risky. But forex is a high-rewarding as compared to the others. You can easily reach 100% or even more of your account balance (your original investment).
I believe is the leverage offered from brokers that gives this chance on forex. obviously is a big risk.  currency percentage movements in pricces are lower than stocks for example or others.
Mirza Baig
3201
Mirza Baig  
Rosiman:
I believe is the leverage offered from brokers that gives this chance on forex. obviously is a big risk.  currency percentage movements in pricces are lower than stocks for example or others.
Yes, leverage is a double-edged sword. You can use it to your benefit but equally, it can wipe your account off if mismanaged. Stocks are quite expensive that currencies, and I think leverage will complement profitable forex trading than stock trading.
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Ronnie Mansolillo
6541
Ronnie Mansolillo  
Shunmas :
Yes, leverage is a double-edged sword. You can use it to your benefit but equally, it can wipe your account off if mismanaged. Stocks are quite expensive that currencies, and I think leverage will complement profitable forex trading than stock trading.
agree. the "leverage" was born to reduce the risk. but is bad used. if for example we have a budget of $ 10,000 and will use 1% invest $ 100. if we have a "leverage" of 1:400 will invest $ 40,000 in the market. This means that we can achieve gains of 40,000, a balance that we don'thave. in any case we run the risk of losing 10,000 maximum. 
Mirza Baig
3201
Mirza Baig  

But a less risky way to reduce the risk would be dividing the whole investment into small chunks and then using it (from purse to account), lets say, $500. And then using leverage to gain. I have observed that traders are far better off using this technique (because "leverage" in effect means "using other people' money).

 

By the way, an important thing we are missing here is the type of broker we are trading with. Virtually every broker out there is a market-maker (trading against us, if we make profit, they lose and vice versa, so there is a conflict of interest). They don't send our trades to ECN markets and keep them in-house.

 

If you deposit $100, and the broker gives you 2000 leverage, you buying power increases to 200,000. This means the broker is giving you their own money to invest. What if you lose ?? Nobody knows how the trade will end u, if you lose, that means you lost the whole $200,000. So why would someone give you $200,000 to trade when everyone knows 95% traders lose.

 

They keep our trades in-house and have created an artificial underground market. When there is a profitable trader, they send his trades to ECN or inter-bank market, and makes money by way of charging spread. Also note, variable spread model is more profitable for brokers than the fixed spread broker model.

It works like this:

 

Spread: 3 pips

Trade Profit Pips: 30

Broker takes: 3/(3+30) = 9.0% of the trade's profit.

This is how they work. Period. 

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ADEM KARATEPE
645
ADEM KARATEPE  
I think majors have lover risk than minors. 
Mirza Baig
3201
Mirza Baig  
Minors, though high-spread pairs, move a lot more than majors, such as EURNZD, EURCAD, EURAUD, etc.
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