Forex trading, or FX for short, has become a popular investment option over the past few years for a variety of reasons. The biggest reason for this is because it is a huge market – currencies are the most traded (liquid) asset in the world, and as such, there can be huge profits to be had.
Many traders also like Forex because it is traded on margin, typically 1% or 100:1 leverage. That means that with as little as $100, you could have a $10,000 currency position. However, that highlights one of the many risks of Forex trading, which you can read below.