What risk means
Risk is the chance that the outcome differs from what you expect — including losing some or all of your capital. When you invest with an account manager, several kinds of risk exist at once.
Kinds of risk
| Kind | Explanation | How to reduce it |
|---|---|---|
| Market risk | Prices move against the trades | Diversify across managers and markets |
| Manager risk | Mistakes, a change of style, or lack of discipline | Careful selection, a stop level, follow-up |
| Leverage risk | High leverage multiplies losses | Watch leverage and trade size |
| Broker risk | Financial or operational trouble at the host broker | A reputable broker with clear regulation |
| Liquidity risk | You cannot leave when you want | Know the rollover window and lock-up |
| Transfer risk | Errors or restrictions on deposits and withdrawals | Safe routes and wallets |
Leverage
Leverage means trading a position larger than your capital. With high leverage, a small price move can wipe out a large part of the account. High leverage is not bad in itself, but you need to know the real trade size relative to capital.
Drawdown and recovery
| Drawdown | Gain needed to recover |
|---|---|
| Ten percent | About eleven percent |
| Twenty-five percent | About thirty-three percent |
| Fifty percent | One hundred percent |
| Seventy-five percent | Three hundred percent |
Try your own numbers with the recovery calculator.
Simple rules
- Only invest money you do not need for essential expenses.
- Split capital across several accounts with different styles.
- Decide before entering at what drawdown you will leave, and set a stop level if possible.
- Do not suddenly increase your amount after a big winning period.
- Review every month using reports and alerts.
Further reading (Persian): Risk management in forex and crypto investing.
Last updated: 2026-10-19
These guides are educational and are not investment advice. Trading and investing in financial markets can lead to the loss of some or all of your capital.