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There is a high degree of risk while trading in foreign exchange. There is a possibility that you might end up losing more than your initial capital investment. Hence, proceed only if you are willing to take risk and can afford small losses. Engage in the trading only when you can truly understand the nature of transaction. As an investor you must know about different kinds of risks and losses. Obviously, the investor is exposed to different types of risks during such transactions. It is recommended that investors must seek advice from expert financial advisor in case of any doubt. Analyze your financial condition, capacity to bear financial risk, level of experience and then proceed forward.