FX margin trading involves inherent risks, including market volatility, leverage amplifying gains and losses, liquidity risks due to market conditions, and geopolitical events affecting currency values. Additionally, counterparty risks arise from dealing with brokers or counterparties. Traders may face interest rate risks if holding positions overnight. Lack of proper risk management, including stop-loss orders, can lead to significant losses. It's crucial to understand these risks before engaging in FX margin trading.