Cost of Capital in Forex Trading: An Academic Overview
Cost of capital forex refers to the amount of money that needs to be invested to participate in the foreign exchange market. It can be impacted by factors such as liquidity, international relations, and of course, the risk associated with the currency pair being traded. Investing in forex requires traders and investors to be aware of the ever-changing market conditions and to be able to adequately manage their risk in order to maximize their returns.