Risk management is a critical component of any forex trading strategy, serving as the safeguard against significant losses and the foundation for long-term success. It involves identifying, assessing, and prioritizing risks to minimize potential financial losses using tools like stop-loss orders, position sizing, and leverage control. Effective risk management ensures that traders can survive adverse market conditions, preserve their capital, and continue trading. By strategically managing risk, traders can maintain a healthy balance between pursuing profit and protecting against loss, ensuring sustainability and stability in their trading activities.