The first one is execution risk, where the spread between prices closes before a trader is able to finalize the trade. This means zero or negative returns. Also, you want to watch out for slippage, outrageous transaction fees, and a sudden spike in volatility. Another risk is liquidity risk. As in, there isn’t enough liquidity for you to get in and out of the markets.  If you’re trading with futures contracts, for example, you may get hit with a margin call if the trade goes against you.  Oops!