Each trading and investment vehicle, they have high level financial risk.
For forex trading, increase amount of leverage make traders have possibility to have higher profit or to get higher lost.Leverage could make you falls down as it can makes you raise up.So, becarefull while you make your leverage of transaction, because it is so important parameter to making profit and lose.
Each significant movement of market could be against traders position. So, traders must be aware at any changing condition.
Successful trader will be aware of the risk, so they will be more carefully each step they make and make strategy to manage their risk.
Actually traders using risk management tools , because it is effective enough to manage the risk, but traders must be aware and make their wise step and condition.
Commonly to minimize risk for forex trading they involving safe ways while use the margin, use the safety margin depend on market condition.Other ways is with calculating the Risk-Reward Ratio which have formula “The profit value for every trade setup must be at leas three times bigger than the risk value”
But keep be aware, because Forex trading involves a substantial risk of losses any time.