Market volatility is an investment term used when a market experiences periods of unpredictable, and sometimes sharp price movements. The term is not only limited to when prices fall, but also to sudden price rises.
Forex trading is prone to suffer from volatility from time to time as it deals with exchange rates, currency pairs, and global financial markets. As such, several risks are associated with forex trading. For the benefit of the investor, we will start by classifying the various risks inherent in forex trading.