Series 34 Exam » Forex Trading Risks » Operational Risk

Operational Risk

Operational risk

Risk inherent in the trader’s operational structure.  For instance if a trader’s decision making skills are spread out and decisions are dependant on a number of different systems, any thing that happens to one part of the system could affect the whole.  This may affect the trader’s ability to enter and exit trades as it would normally do.

Additionally, forex dealers typically have operational risk related to their quoting and execution systems.

Study Guide >> Forex Trading Risks >>Operational Risk

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