Market Risk
a.k.a. Systematic risk
The risk of losing money simply because prices move against you.
In plain English
The risk of losing money simply because prices move against you.
Market risk is the plain, unavoidable danger of trading: the price goes the wrong way. You picked EUR/USD to rise, the ECB said something gloomy, and it dropped 80 pips. No fraud, no glitch, just the market doing what markets do.
It is different from other risks like your broker going bust (counterparty risk) or not being able to get out of a trade (liquidity risk). You cannot remove market risk, only size it: that is what stop-losses and position sizing are for.
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