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Risk Definition

In the context of trading, risk is the potential that your chosen investments may fail to deliver your anticipated outcome. That could mean getting lower returns than expected, or losing your original investment – and in certain forms of trading, it can even mean a loss that exceeds your deposit.

Types of Potential Risks in Trading

There are two main forms of risk associated with trading: Market risk and liquidity risk there is the potential that your chosen investments may fail to deliver your anticipated outcome.

What is market risk? 

Market risk is the capacity for your trades to result in losses due to unfavorable price movements that affect the market as a whole. There are several factors that can cause market risk, but movement in any of the following can exert major pressure:

  • Stock prices

  • Interest rates

  • Foreign exchange rates

  • Commodity prices, etc.

How to manage your risk

Risk management is the process of identifying, analyzing and reducing risk in your trading decisions. Usually, it involves developing a trading plan that helps you decide what to trade, when to trade and where to place your stop losses. Here are three tips on how to manage risk:

1. Assess risk vs return

In general, trading strategies focus on weighing up a trade’s potential risk against its potential return. If a trade has greater risk, it should carry the chance of a greater return to make that risk worthwhile.

2. Understand each market’s risks

It’s important to ensure you understand the factors that influence different markets, so you can base your dealing strategies on relevant information. Improve your success rate by learning more about the markets you’re dealing on and exploring new strategies. Multiple Time Frame System (TWE) Do not take any responsibility for your actions.

3. Keep learning

Learning to trade successfully while managing your risk is a continual process – and one of the best ways of ensuring that you are always improving is by starting a trading diary. By keeping track of which trades and strategies have worked in the past, you can build on your successes and learn from your failures.


Risk Disclosure

You should carefully think over your investment objectives, risks and experience before participating in the Futures & Forex market. It is important to not invest money you cannot afford to lose.

Considerable risks in Futures & Forex transactions exist. Those risks include without limitation, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, liquidity of a currency or currency pair or Futures Contract.

As a result of the volatile nature of Futures & Forex trading, any market movement will have an equal effect on your deposited funds. There is a possibility that you could sustain a total loss of initial margin funds and be required to deposit extra funds to maintain your position. If you fail to satisfy any margin requirement, your position may be liquidated and you become responsible for any losses. To manage exposure, employ different risk-reducing strategies.

You also can face with different risks associated with using an Internet-based trading system including, without limitation, the hardware, software, and Internet connection failures. Multiple Time Frame System (TWE)/ is not responsible for any communication failures or delays when trading via the Internet.

Multiple Time Frame System (TWE)/ is not liable for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on systems and signals shown by Multiple Time Frame System (TWE)/ is not responsible for the correctness of any signals and systems available through

Any opinions, news, research, analyses, prices, or other information offered by does not constitute investment advice. Multiple Time Frame System (TWE)/ will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. We reserve the right to refuse to give or sell our indicators or trading systems at any time for any reason.

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