Forex trading carries a significant degree of risk; this is due in part to the volatility of the markets and the leverage provided by many Forex brokers. There is the potential to lose entire investments or to severely limit profits. Fortunately, Forex trading also provides people with the potential to maximize profits by utilizing the leverage that is provided by brokers. Still, it is essential to understand the risks of Forex trading, including the impact of financial, political, and economic events on the markets. People who are engaging in Forex trading should have an understanding of the risks involved and do their best to develop strategies that seek to minimize their risk.