Country Risk/Sovereign Risk
Some countries still interfere (i.e. limit supply of currency available) with the natural market mechanisms of the forex markets. Such interference could affect a currency in a number of different ways including the liquidity of the currency. If significant enough the trader may not be able to receive a rightful payment. Country risk is most acute with the so called “exotics.”
Study Guide >> Forex Trading Risks >> Country Risk
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[...] Country or sovereign risk [...]