In forex trading, risk refers to the potential for financial loss resulting from the exposure to market volatility and other uncertainties associated with trading currencies. Traders face various types of risks, including market risk, credit risk, liquidity risk, operational risk, and regulatory risk. Forex traders use various risk management techniques and strategies to minimize their exposure to potential losses, such as stop-loss orders, position sizing, diversification, and hedging. Risk management is an essential aspect of forex trading and is critical to achieving long-term profitability in the forex market.