New traders kay liye behtreen trading tip

how many treasure hunters have bought copies of the treasure map.)

Paul Belogour, the Managing Director of a Boston-based retail forex trader, was quoted by the Financial Times as saying, "Trading foreign

exchange is an excellent way for investors to find out how tough the markets really are. But I say to customers: if this is money you have worked hard for – that you cannot afford to lose – never, never invest in foreign exchange." [17]

High leverage[edit]

Contents [hide]
1 Government interventions
2 Types of fraud
3 Increase in fraud
4 Not beating the market
5 High leverage
6 Alleged scamming by country
6.1 Cyprus
7 Convicted scammers

By offering high leverage some market makers encourage traders to trade extremely large positions. This increases the trading volume cleared by the market maker and increases their profit, but increases the risk that the

trader will receive a margin call. While professional currency dealers such as banks and hedge funds tend to use no more than 10:1 leverage, retail clients may be offered leverage between 50:1 and 400:1.[2]

Forex scandal
Fraud
Gambler's conceit
Gambler's ruin
High-yield investment program
References[edit]

^ Jump up to: a b Lindsay, Daniel (2014-01-20). "Regulatory Holes Provide A Playground For Forex Fraudsters". MahiFX. Retrieved 2014-01-28.
^ Jump up to: a b Egan, Jack (2005-06-19). "Check the Currency Risk. Then Multiply by 100".

The New York Times. Retrieved 2007-10-30.
Jump up ^ McKay, Peter A. (2005-07-26). "Scammers Operating on Periphery Of CFTC's Domain Lure Little Guy With Fantastic Promises of Profits". The Wall Street Journal (Dow Jones and Company). Retrieved 2007-10-31.
^ Jump up to: a b "Forex Fraud Investor Alert". North American Securitie

s Administrators Association, accessed January 12, 2008
^ Jump up to: a b Douch, Nick (1989). The Economics of Foreign Exchange. Greenwood Press. pp. 87–90. ISBN 978-0-89930-499-1.
J

ump up ^ "Regulators Join Forces to Warn Public of Foreign Currency Trading Frauds". U.S. Commodity Futures Trading Commission. 2007-05-07. Archived from the original on 2007-11-05. Retrieved 2008-03-18.
Jump up ^ "CFTC establishes task force on currency fraud". Washington Po

Foreign exchange marketst. 2007-08-11.
Jump up ^ The Federal Register Section E. The Commission's Proposed Rules
Jump up ^ SOFTWARE VENDOR CHARGED CFTC News Release 4789-03, May 21, 2003
J

ump up ^ CFTC complaint Forex Advisory Firm and Trade Risk Management Firm Charged With Fraud
Jump up ^ Fraud charges against multiple forex Firms Commodity Futures Trading Commission (CFTC) Release: 4946-0
Jump up ^ Foreign Currency Fraud Action Commodity Futures Trading Commission (CFTC) vs. Donald O’Neill
J

ump up ^ FOREX Advisory Commodity Futures Trading Commission's FOREIGN CURRENCY TRADING FRAUDS
Jump up ^ Forex Information Commodity Futures Trading Commission (CFTC) Forex Information for investors
o

Jump up ^ National Futures Association (NFA) NFA launches learning program
Jump up ^ "Foreign Exchange Controls". Top Forex News. Retrieved 17 December 2013.
Jump up ^ Garnham, Peter (2006-05-17). "FX gamblers geared to win (or lose)". Financial Times (The Financial Times Ltd). Retrieved 2008-03-10.
Jump up ^ "Suit alleges Easy Forex rewards brokers f

Jump up ^ National Futures Association (NFA) NFA launches learning program
Jump up ^ "Foreign Exchange Controls". Top Forex News. Retrieved 17 December 2013.
Jump up ^ Garnham, Peter (2006-05-17). "FX gamblers geared to win (or lose)".