Risk
The chance of losing money, or of a result turning out worse than you expected.
In plain English
The chance of losing money, or of a result turning out worse than you expected.
Risk in trading is the possibility that things go wrong and cost you money. Every trade carries it; there is no such thing as a sure thing. The questions are how much you are risking, whether the possible reward is worth it, and whether you could survive being wrong several times in a row.
Traders also say "risk" as shorthand for how much they stand to lose on a trade: "I'm risking 50 dollars". Managing that number carefully is what risk management is all about.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.