Poor Risk Reward Trades Doom Retail Traders in Currency Market, says Study

April 27, 2012

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FXCM, a large currency broker, studied twelve million trades placed by several thousand retail traders. Customers are correct 60 percent of the time; however, they average 52bps on winning trades, compared to 94 pips on losing trades. The study also found profits are correlated with higher volatility currency pairs.

 

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