The most significant risk associated with forex trading is leverage. With most forex brokers, you can keep a certain amount of money in your account while also being able to leverage that amount more than 200 times. On the winning side, you may make a significant amount of money, but on the losing side, you could lose a significant amount of money. A simple way to avoid falling into this trap is to use some of the tools built into trading software, such as stop loss mechanisms and negative balances.