The forex market is indeed an avenue for high earnings by capitalizing on the favorable currency pair price movement. However, uncertain economic and political events can suddenly unsettle the movement and lead to losses. That’s why it’s important to employ these forex risk management tools. Stop-loss Orders (Helps minimize losses by closing the trade as the price falls to a specified level) Take-profit Orders (Helps secure profit targets once they are accomplished) Risk Reward Ratio Strategy (Allows traders to understand how feasible the trading is amid underlying risks in response to the potential gains) Position Sizing Calculation (Ensures proportionate trade volume considering the trader’s risk appetite and account balance)