The security of funds is the most important issue in the transaction. Because foreign exchange speculation is not guaranteed by a settlement institution, the margin for customers to buy and sell foreign exchange contracts is not protected by any regulatory agency and does not enjoy bankruptcy priority; When the broker goes bankrupt, the client's funds are not protected. According to the provisions of the bankruptcy law of the United States, stock customers or commodity customers have the priority to pay off their creditor's rights, so it is entirely possible to preserve all the funds when a securities firm goes bankrupt. However, since foreign exchange spot is neither a stock nor a commodity, foreign exchange spot customers are neither stock customers nor commodity customers. It is precisely because of the lack of legal status that they can only enter the bankruptcy liquidation procedure as unsecured creditors, which may lead to the total loss of their money.

2. Risks of the market itself

Because the foreign exchange market operates 24 hours a day, there is no upper or lower limit for the fluctuation of exchange rate, so when the fluctuation is severe, it may be a month or even months for a few hours a day. Because the foreign exchange trend is influenced by many factors, no one can accurately predict and judge the foreign exchange trend. When holding a position, any unexpected exchange rate fluctuation may lead to a large loss of funds, or even little left.

3. High leverage brings high risks

Although every kind of investment has risks, foreign exchange transactions use the capital leverage model, which also magnifies the amount of losses. Especially in the case of using high leverage, even if it is slightly different from the trend of the transaction, it will bring huge losses, even including all the account opening funds. Therefore, try to use funds beyond the necessities of life, that is to say, even if all these funds are lost, it will not have a major impact on life and finance.

4. Network transaction risk

Although the telephone trading system is available in all major traders, the main trading mode of foreign exchange secured transactions is realized through the network. Due to the characteristics of the Internet itself, it often leads to the situation that traders can't connect. In this case, customers can't place orders, or even stop at their own pace, which also leads to many unexpected losses. However, traders do not need to take responsibility for this, even if their trading system has problems, they do not necessarily need to take responsibility. Similarly, the firm transaction of domestic banks also avoids such risks, which is clearly stated in the transaction account opening book. Therefore, choosing a suitable dealer to open a foreign exchange account can greatly reduce your trading risk.

In addition, whether it is domestic speculation or foreign exchange margin trading, it is very common to trade at a specific time (unable to connect to the trading system of securities firms), so traders should avoid and understand this phenomenon in advance.