Introduction About Forex
Retail participation in off-exchange foreign currency
(forex) markets has increased dramatically in
the past few years. If you are a retail investor considering
participating in this market, you need to fully
understand the market and some of its unique features.
Like many other investments, off-exchange foreign currency
trading carries a high level of risk and may not be suitable for
all investors. In fact, you could lose all of your initial investment
and may be liable for additional losses. Therefore, you need to
understand the risks associated with this product.
You should also understand the language of the forex markets
booklet defines some of the most commonly used terms.
This booklet does not suggest that you should or should not
participate in the retail offexchange foreign currencymarket.
You should make that decision after consulting with your financial
advisor and considering your own financial situation and
objectives. In that regard, you may find this booklet helpful as
one component of the due diligence process that investors are
encouraged to undertake before making any investment decisions
about the off-exchange foreign currency market.
Finally, the discussion in this booklet assumes you are funding
your forex account with US dollars. The principles in this booklet
apply to all currencies,however
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