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FOREX MARKET - Coggle Diagram
FOREX MARKET
Who or what regulates the Forex market in the world
Securities and Exchange Commission
Financial Industry Regulatory Authority
Securities Investor Protection Corporation
Commodities Futures Trade Commission.
Which organizations regulate the Forex market in those countries?
Banco de México
U.S. Securities and Exchange Commission (U.S. SEC),
Chicago Board of Trade (CBOT), and.
Securities Investor Protection Corporation (SIPC)
Cyprus Securities and Exchange Commission (CySEC
Financial Conduct Authority (FCA).
What risks does the asset investment in the Forex market represent?
Leverage Risks
During volatile market conditions, aggressive use of leverage can result in substantial losses in excess of initial investments
Interest Rate Risks
its circuitous effect on exchange rates, the differential between currency values can cause forex prices to dramatically change
Transaction Risks
currencies may be traded at different prices at different times during trading hours
Counterparty Risk
During volatile market conditions, the counterparty may be unable or refuse to adhere to contract
What points should be considered before participating in the Forex market?
The currency pairs you are trading in
It’s important to be familiar with the currency pairs you’re trading in.
The significance of the bid-ask spread
A higher spread may indicate lower liquidity, and vice versa. So, keep an eye on the spread and plan your trades accordingly
Leverage
Leverage is essentially borrowed money, and it can be your best friend or your worst enemy
Forex trading strategies
There are many different forex strategies you can consider when you trade in currencies.