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These strategies carry a high risk of liquidation, so make sure you understand the mechanisms very well before taking risks. Getting your funds back home or purchasing goods abroad is a key forex market use case. Primarily, traders hedge to avoid the risk of fluctuations in the exchange rate. Forex FX is a contraction of foreign exchange, referring to the global market for buying and selling currencies. But with the rise of online brokers and increasing competition in bringing financial services to the public, forex isn't so out of reach.
