Trading currencies on foreign exchange carries a high level of risk, and may not be suitable for all investors. The margin required to create a currency position represents a small percentage of the value of the position. As a result, spot currency contracts are highly leveraged. This leverage means that significant losses can be created quickly and unexpectedly. You can lose all the money invested in your currency positions and more. Before deciding to trade currencies, carefully consider your investment objectives, level of experience, and risk tolerance. Because it is possible that some or all of your initial investment could be lost, you should not invest money that you cannot afford to lose. None of the education or other information that is given by Investools to its students constitutes investment advice. Results are not typical, and many people lose money trading the foreign exchange.