A risk disclosure statement is the document a regulated broker must give clients before they start trading, setting out the main risks of leveraged forex and CFD trading: how quickly losses can accumulate, the amplifying effect of leverage, price gaps, and the possibility of losing the entire deposit. Many jurisdictions also require a standardised risk warning on the broker's website and marketing material.
The statement forms part of the client agreement, alongside the terms of business, order execution policy and fee schedule. It is a disclosure rather than a protection: acknowledging it does not limit a trader's losses. Reading it carefully is still one of the clearest ways to see how a broker describes execution, costs and the risks clients are expected to carry.
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How to Measure Risk Across All Your Open Positions
Risk per trade only describes one ticket. How to add up what your stops are worth, split the book into currencies, and read the margin figures the platform is already showing you.