How risky is Forex trading?

If you trade on the futures market, ie agreeing to purchase or sell a currency at some time in the future - the risks can be high due to the nature of the contracts. Options are less risky as they generally carry a maximum risk from the outset. Spot or cash exchange carries no risk. You simply exchange what you've paid for at that days rate. If the curency moves up or down afterwards, it doesn't affect you.