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Disadvantages

Price Determination Process

The process of price determination of foreign currency is often believed to be complex because of the composite price determination process.

The fluctuations of exchange rates are influenced by multiple reasons and factors. The international politics and economy influence the rate of the currency the most, which creates uncertainty of the price.

The forex trading is usually done on the basis of technical analysis and indicators, which generally are not adequate to determine this type of fluctuation.

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