Limiting risk is crucial in forex trading to protect your capital and maximize profits. This involves using stop-loss orders, position sizing, and risk management strategies to minimize potential losses. By limiting risk, traders can avoid emotional decision-making and maintain discipline, which is essential for long-term success in the forex market. Additionally, limiting risk allows traders to stay in the game and take advantage of future opportunities. Managing risk is an ongoing process that requires constant monitoring and adjustment, but it is a key component of any successful trading strategy.