In its official meaning, risk describes the potential of losing something of value. Traders often talk about risk as ‘the cost of doing business’, which is a very shallow way of looking at it and does not fully capture the whole meaning of risk in trading. It is true that upon entering a trade, you are risking a certain amount; the distance of your stop loss order, in combination with your position size defines the worst-case scenario. However, it goes much further and risk is a very complex concept in trading that can be controlled and managed very accurately.