Market risk: Trading financial instruments involves the risk of losses due to fluctuations in market prices. Leverage risk: Trading with leverage magnifies both potential profits and potential losses. While leverage can increase profits, it can also increase losses. Counterparty risk: Trading with a counterparty, such as a broker or liquidity provider, involves the risk that the counterparty may not be able to fulfill its obligations. Operational risk: The risk of losses due to errors in the trading platform or communication failures. Political and economic risk: Changes in political or economic conditions can have a significant impact on financial markets.