1️⃣ Volatility — Price moves quickly
Example: EUR/USD can move 50 pips in 1 minute if there’s big news.
2️⃣ Leverage — Small capital, large profit/loss
Example: Deposit $100, trade large lot — small loss can wipe out capital.
3️⃣ Margin Call — Account closed automatically
Example: If price goes against you, account balance drops, broker closes your trade.
4️⃣ Slippage — Actual price not same as expected
Example: Buy set at 1.2000, but order fills at 1.2003 because the market is fast.
5️⃣ Spread — Difference between buy & sell price
Example: Spread is 3 pips → when you open trade, you start with 3 pips loss.
6️⃣ Unpredictable Market — Price changes due to external factors
Example: Interest rate news can make currency price jump or drop suddenly.
7️⃣ Emotions & Psychology — Feelings affect decisions
Example: Small loss causes panic → close trade too early. Or greed → don’t take profit, price reverses.
8️⃣ Broker Risk — Broker dishonest or bankrupt
Example: Broker shuts down, traders’ money is lost.
9️⃣ Technical Risk — Internet/server problem
Example: Internet disconnects → can’t close trade when price drops.
🔟 Low Liquidity — Hard to buy/sell quickly
Example: Exotic pairs like USD/TRY have wide spreads, hard to close big orders without slippage.


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