Examples and edge cases

SWritten by Shockwave

Scenario	How it affects your risk exposure
No Stop Loss Used	If you do not use stop losses, your open positions can run well past your intended risk amount. This easily leads to exceeding the 2% risk exposure rule.
Market Gaps / Slippage	Sudden price jumps (e.g., news releases) can cause orders to fill worse than expected, turning a properly sized trade into an oversized risk. If your total risk exposure was too tight to begin with, this can push actual losses beyond what is allowed.
Swaps, Commissions, Spreads	Holding trades overnight or during volatile periods can incur swap fees and higher spreads, increasing your realized loss beyond your planned risk. You must leave buffer room within your 2% total risk to account for these costs.
Major News Events	Trading during high-impact economic news can create huge spikes and fast moves that cause unexpected losses. If your total open risk is too high, a sudden move can lead to a loss far above 2% before you can react.
Low Liquidity / Illiquid Sessions	Trading during quiet times (late night, holidays, weekends) often leads to wider spreads and bigger gaps. This can magnify losses if you are near your total risk limit.
Stacking Multiple Trades	Opening many small trades can quietly add up to more than 2% total risk. If the market turns, you can lose more than allowed in a single move.
Not Actively Managing Trades	Leaving trades unattended or relying solely on manual closure increases the chance of your losses exceeding the 2% total risk you are allowed.
No Take Profit	Not setting take profits can cause you to miss opportunities to lock in profits — and if the trade reverses, your open risk remains active, counting towards your total allowed exposure.