Why is forex trading often said to be high risk?
I am always reading how wild the forex market is and how most trading forex never profit and stop trading forex. I am looking at various charts for usd to yen or usd to euro for instance and it doesn’t look all that volatile compared to many small cap stocks.. am i missing something? When a currency dips it usually looks to be around a %5 – %10 draw back, I wouldn’t call that very high risk.
Do most people trade forex with margin accounts? From my understanding w/ trading stocks – margin can allow you to double your return or loss, is there typically more leverage allowed for forex traders?
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