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Forex traders buy and sell moneys in order to profit from variations in their exchange rates. They may also use forex trading to hedge against currency risk or to speculate on the future direction of currency markets.
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Forex trading can be a risky activity, and it is important to understand the risks involved before you start trading. Some of the dangers of forex trading include:

Market volatility: The forex market is very volatile, and prices can fluctuate rapidly. This can make it difficult to make profits and can lead to losses.

Leverage: Forex traders can use leverage, which means that they can control a large position with a relatively small quantity of capital. This can enlarge profits, but it can also magnify losses.

Slippage: Slippage is the difference amid the price at which you place an order and the price at which it is executed. Slippage can occur due to market volatility or due to the feast between the bid and ask prices.

Commissions: Forex brokers charge commissions for each trade. These commissions can eat into your profits and make it more difficult to make money.

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