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Risks

Diversify Your Forex Portfolio

A classic, tried and tested risk management rule is to not put all your eggs in one basket, so to speak, and Forex is no exception. By having a diverse range of investments, you protect yourself in case one market drops, the drop will hopefully be compensated for by other markets that are perhaps experiencing stronger performance.

With this in mind, you can manage your Forex risk by ensuring that Forex is a portion of your portfolio, but not all of it. Another way you can expand is to exchange more than one currency pair.

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