Understanding Trading Risk

A beginner-friendly overview of market, liquidity, leverage, technology, and product risk.

  • Risk management
  • 7 min
  • General information, not personal advice
A phone showing a market chart
On this page3 sections

Risk is multi-dimensional

  • Market risk: prices can move rapidly or gap.
  • Liquidity risk: an instrument may not trade at the expected size or price.
  • Leverage risk: losses develop faster than with unleveraged exposure.
  • Technology risk: connectivity, devices, providers, or data can fail.
  • Counterparty risk: banks, providers, issuers, or protocols may fail.
  • Product risk: lockups, penalties, slashing, or maturity rules can restrict access.

Suitability is personal

A product that is available is not automatically suitable. Consider financial circumstances, knowledge, time horizon, capacity for loss, and whether independent advice is needed.

Use the formal disclosure

This guide is educational. The Risk Disclosure is the authoritative platform document and should be reviewed before accepting an account agreement or product.

Availability depends on account status, verification, jurisdiction, product configuration, and current platform controls.

Understanding Trading Risk | Ohana Capital