Macro risks can come in a variety of forms. For example, a decision by the RBI is a macro risk. The failure of monsoon or the plight of farmers can also be a key macro risk. The $90 billion of NPAs that Indian banks are sitting on can also be a macro risk. Similarly, the macro risk can also come from political developments like change in government, shift in policies, anti-reformist tilt etc. Lastly, risks can also come from global events. A sharp spike in oil prices can be negative for the macros of the Indian economy. Geopolitical risk in West Asia and the Middle East is also a key risk for Indian economy. Typically, these are volatile situations and can make the markets behave in a very erratic fashion. When the macros are volatile, then traders should avoid averaging both long and short positions in the market.