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What is martingale strategy in forex and why is it risky?

The Martingale approach doubles position size after each loss, aiming to recover losses with one win. In theory, it ensures recovery; in practice, account size and margin limits make it unsustainable. Benefits: psychological comfort—traders feel losses are temporary. Risks: exponential growth of exposure and inevitable blowup. Institutions avoid Martingale because it violates risk management principles. Retail traders drawn to it often underestimate losing streak probabilities. The lesson: survival in forex requires limiting risk, not compounding it during adversity. Martingale remains a cautionary tale of overconfidence in flawed math.