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General TradingR
Risk
The potential for financial loss or unfavorable outcomes when trading or investing. Risk can arise from market volatility, leverage, liquidity constraints, geopolitical events, and other factors that cause prices to move against a position.
Example
“A trader using 10x leverage on a Bitcoin position faces amplified risk — a 5% drop in BTC price would result in a 50% loss on their capital, potentially triggering a margin call.”