Risk (Foreign Exchange Risk)
Risk in forex refers to that the exchange rate on a foreign currency can move against the position held by an investor in a way that the value of the investment is reduced and causes the investor to meet up with a loss.

The probability of the decline in the value of a currency in the exchange rates is known as the risk.

In a bearish trend if the market the value of the currency goes down and the “currency risk is more” at this position to the currency involved.  A downward trend is said to be disadvantageous to the financial position of country or the investor that owns the currency. 

The risk of the currency is dependent upon country risk in any kind of exchange transaction, which includes and is not limited to legal and political conditions.

Technical and fundamental analysis is used as investigation tools to forecast downward trends in forex.
 
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