The reason why foreign exchange cross trading is difficult. Presumably all traders know that the foreign exchange market can be divided into straight and cross markets according to the types of currency pairs. The straight trading refers to the currency pair that contains the US dollar, and the cross trading refers to the currency pair that does not contain the US dollar. At present, most traders choose to do straight trading, because foreign exchange cross trading is relatively difficult to do. So why?

One reason why it is difficult to do foreign exchange cross trading is that there is no obvious regularity. There is no obvious regularity of foreign exchange cross trading, so even if many traders have mastered skilled technical analysis methods, they still cannot accurately judge the trend of cross trading.

The second reason for the difficulty of foreign exchange cross trading is that the volatility of foreign exchange cross trading is generally relatively large, so the risk is relatively high. The large volatility means that it is more difficult to set the stop loss. Setting it too small is meaningless, and setting it too large will test the trader’s tolerance. Therefore, the risk factor of foreign exchange cross trading is too large.

The third reason for the difficulty of foreign exchange cross trading is that the foreign exchange cross trading is easy to be interfered by the government, and the uncertain factors are high. Everyone knows that the United States is the most developed country in the world and its economy is relatively stable. When other governments intervene in currency exchange rates, the impact on cross trading is far greater than that on direct trading, so government intervention will greatly increase the risk of foreign exchange cross trading.

As for the reasons why it is difficult to do foreign exchange cross trading, I will explain it to you today. All in all, there is no obvious regularity in foreign exchange cross trading and the risk is relatively high. It is not recommended for foreign exchange beginners to do foreign exchange cross trading.