When calculating risk, always factor in spreads and trading fees because they directly impact your entry, exit, and overall profitability. The spread—the difference between the bid and ask price—means you start every trade at a slight loss, which can be significant in high-spread assets or low-liquidity markets. Trading fees, including commissions, overnight financing (swap fees), and slippage, can eat into profits, especially for frequent traders or those using small position sizes. Ignoring these costs can lead to miscalculating risk-reward ratios and overestimating potential profits.