So, what are the pros and cons of trading forex? To start with, let’s talk about forex trading risks. Currency markets are constantly fluctuating, driven by a wide range of factors: macroeconomic indicators, geopolitical events, market sentiment and more. While this volatility gives you the opportunity to make profits from forex trading, it can also lead to significant losses should the market move sharply against you. Furthermore, spread betting and CFD trading on forex are forms of margin trading. This means that you only have to put down a fraction of the full position value to open your position. Margin trading greatly increases the potential return on your investment capital, but it equally magnifies your potential downside risk. If you are comfortable with the risks involved, forex trading gives you a wide range of trading opportunities with major, minor and exotic forex pairs traded 24 hours a day. With online trading, the forex market is highly accessible for new traders, so you can tailor your trading to your own style, aims and schedule. Forex trading also suits a variety of trading strategies, both speculative and defensive, and can be supported by different types of analysis. For instance, you could base your forex trading decisions upon the monetary policy decisions of central banks, or upon your technical analysis of price patterns on your forex trading charts.