Beware the volatility
LOOKING to invest in non-deliverable forwards? Here are some tips from Kenneth Tan, assistant manager at Phillip Futures' Foreign Exchange desk:
The daily movements of the Asian currencies are much greater than those of the majors, like the USD or euro, and losses can be significant. Prudence is key.
Traders should determine their stop-loss levels, based on how much losses they are able to incur. If such levels are reached, they should close their positions.
DO YOUR HOMEWORK
Study the price actions of the currencies you are trading.
Keep up to date with developments in their economies. For example, if you are trading the USD against the Indonesian rupiah, stay abreast of the Indonesian election results.