trading risks

Trading is a great way to make money, but it also carries a range of risks. When trading, it’s important to be aware of the potential pitfalls to ensure you’re making wise decisions. Common trading risks include market volatility, leverage, counterparty risk, and technology risk. Market volatility is the ever-changing nature of the markets, which can lead to unexpected losses. Leverage can increase potential gains but also amplify losses. Counterparty risk is the risk of one party not fulfilling its contractual obligations. Technology risk is the risk of technical flaws in trading platforms causing incorrect trading or lost funds. Knowing and managing these risks can help you protect your investments.