LEVERAGED foreign exchange trading demands caution to secure market positions and minimise risks, says Cheung Yin-wong, a lecturer at City University of Hong Kong's department of economics and finance.
Mr Cheung said investors should understand margin trading and also research profit and loss potential before buying currencies.
'There is no easy solution to accurately calculating market movements,' he said.
'Investors can talk to representatives from trading houses and financial institutions offering these services.
'Advice on these potential risks should be sought from more than one financial consultant.' Margin requirements should also be looked into, he said.
Requirements varied between financial institutions, so investors should find out these terms.
