Risk

Risk tolerance basically is the amount of psychological pain you are willing to suffer from your investments.

Risk-based capital One of three capital standards adopted for savings institutions in 1989. The standard is designed to require savings institutions to hold more capital for higher-risk assets.

risk analysis Definition 1 Corporate: As a component of risk management, it consists of (1) Identification of possible negative external and internal conditions, events, or situations, ...

Risk Arbitrage Articles What is Arbitrage - In economics, arbitrage is the practice of taking advantage of a state of imbalance between two (or possibly more) markets: a combination of matching deals are struck that exploit the imbalance, ...

Risk Premium - Understanding The Price Of Success In Spanish, there is a phrase "no vale la pena" and it can be translated "it isn't worth it." This is the classic decision that an investor is forced to make in the stock market.

Risk/Reward Ratio, Definition The relationship between the probability of loss and profit. This ratio is often used as a basis for trade selection or comparison.

The risk management process has to begin before one begins a trade. Most important, one must know beforehand how much one is willing to lose, along with how much one can lose in a planned trade.

Rate of Return and Risk If you are new to investing, you need a comprehensive investment basis regardless of whether you invest on an individual basis or via a broker.

Risk Adjustment Since the persisting profitability of our models could be explained by a risk premium, we go one step further and adjust the profits of the different trading rules for risk.

Risk prone Willing to pay money to transfer risk from others. How to Hedge Positions using Futures Many participants in the markets are hedgers. Their main aim is to use the futures markets to reduce a particular risk that they might face.

Risk is a factor involved in my attempt to do something that I know nothing about. Think about it. If I know (have knowledge of), I have eliminated or reduced risk to a minimum level. All things and procedures in life have risk.

Risk Capital By: FX-Strategy.com Risk Capital The amount of money a trader has in his/her trading account.

The risk that a debtor will not repay; more specifically the risk that the counterparty does not have the currency promised to be delivered. Next Forex Glossary Term: Cross Deal Start Trading Now ...

Equity risk is the risk that one's investments will depreciate because of stock market dynamics causing one to lose money.

Country risk has to do with various factors that can impact the level of risk associated with transactions originating in different countries.

Aggregate Risk Size of exposure of a bank to a single customer for both spot and forward contracts. Search by letter : ...

Measure reward:risk before taking a trade, and let it guide your open position. Price close to good support identifies a low-risk long setup. Price close to substantial resistance identifies a low-risk short sale.

Trading Penny Stocks - High Risk Equals Big Profits The definition of a penny stock is any stock that is trading under the price of $5.00 per share. These stocks are high risk to trade and usually move based on speculation.

Call risk is the risk associated with the possibility that a callable bond will be redeemed before maturity. Call Schedule The schedule of call dates and call prices for a callable security.

Risk of Selling Shares Short Short selling is viewed as one of the riskiest forms of trading. Unlike buying a security, where your losses are limited to what you put up, the risks with short selling is unlimited.

Risk tolerance The ability to tolerate investment risk, depending on your investment goals, time horizon and preference. If you have a long time before you will need your investments, you will generally have a higher risk tolerance.

risk tolerance An individual's risk tolerance is his ability to stomach the ups and downs of the market.

Risk appetite - investors' tolerance for financial risk; some investors are willing only to buy safe assets like Treasuries, ...

Risk, in general, is the possibility of sustaining damage, injury, or loss. This is true in the world of investments also, of course. Investments that are termed "high risk" have a significant possibility that their value will drop to zero.

Risk note: The transaction of Forex instruments can contain a substantial degree of risk. Risk disclaimer Start Over Join Now ...

Risk-Return Tradeoff The principle that potential return rises with an increase in risk.

Risk Adjusted Rate of Return If you have more than a casual interest in building wealth and investments, you have no doubt come across the term risk adjusted rate of return.

Risk Rating/Bankruptcy Reports In addition, we have included two Risk Rating/Bankruptcy reports, presented annually for the last 5 years and quarterly for the last 8 quarters. These reports show what the company would be worth upon liquidation.

Risk indexes Categories of risk used to calculate fundamental beta, including (1) market variability, (2) earnings variability, (3) low valuation and unsuccess, (4) immaturity and smallness, (5) growth orientation, and (6) financial risk.

Risk - (1) The possibility of loss. (2) The dollar difference between the current price and the price at which the liquidation of open positions would occur.

Risk Warning All trading in financial markets involves degrees of risk-taking. While Metronome HistoryMaker (the product) may aid in establishing measures of risk inherent in mechanical trading systems, it WILL NOT guarantee their profitability.

Risk tolerance An investor's ability or willingness to endure declines in the prices of investments while waiting for them to increase in value.

Risk Management: The employment of financial analysis and use of trading techniques to reduce and/or control exposure to financial risk. Sell Limit Order: An order to execute a transaction only at a specified price (the limit) or higher.

Risk of a Bull Call Spread The biggest risk of a bull call spread is that your prediction is wrong and the price of the underlying stock doesn't go above the breakeven point on the trade.

Risk The risk ("security") of a municipal bond is a measure of how likely the issuer is to make all payments, on time and in full, as promised in the agreement between the issuer and bond holder (the "bond documents").

RISK STATEMENT: The trading of stocks, futures, commodities, index futures or any other securities has potential rewards, and it also has potential risks involved. Trading may not be suitable for all users of this Website.

risk/reward ratio " the greater the risk, the greater the reward settlement date " the three-day deadline after a trade, by which the client must pay for the buy or will receive funds from a sale ...

Risk Risk is the financial uncertainty that the actual return on an investment will be different from the expected return.

Risk Factor: See Delta. Risk/Reward Ratio: The relationship between the probability of loss and profit. This ratio is often used as a basis for trade selection or comparison.

Risk In its simplest sense, risk is the variability of returns. Investments with greater inherent risk must promise higher expected yields if investors are to be attracted to them.

Risk/Reward Ratio The relationship between the probability of loss and profit. This ratio is often used as a basis for trade selection or comparison. Roll-Over ...

Risk Warning Privacy Policy Compliance Site Map Alpari (US), LLC is registered with the CFTC as a Futures Commission Merchant and is a member of the NFA - Member ID: 0379678.

Risk The chance of losing money on an investment. Risk arises from variability in returns. The greater the potential variability (in stock prices, for example), the greater the risk.

Risk Disclosure -- However, it is important to realize that if you had bought a corn futures contract and prices dropped 30-cents you would be losing $1,500 plus fees and commissions. Leverage can work for or against you.

Risk: The possibility that an investment may fluctuate in value. See types of risk below.

Risk - The chance that an investor's return-on-investment (ROI) will be different from that expected, including the potential for loss of part or all of his or her investment funds.

Risk The measurable possibility of losing or not gaining value. Risk is differentiated from uncertainty, which is not measurable. Sales Charge The amount of commission paid by an investor to a sales organization.

Risk - exposure to uncertain change, the variability of returns significantly the likelihood of less-than-expected returns.

Risk: the variability of returns, referring to the possiblity that an asset may not achieve its expected rate of return. Generally, the higher the return, the higher the potential risk.

Risk The potential financial loss inherent in an investment. Risk (Implied) In which the formula produces the percentage overbought/oversold for a contract using the price, a moving average and the option's implied volatility.

Risk - Exposure to uncertain change, most often used with a negative connotation of adverse change. Risk Management - the employment of financial analysis and trading techniques to reduce and/or control exposure to various types of risk.

Risk - The quantifiable likelihood of loss or less-than-expected returns. Risk Tolerance - An investorâEâ"¢s ability to handle declines in the value of his/her portfolio. S ...

Risk or Residual - The amount of profit or spread left in a syndicate account after meeting all other expenses or deductions.

Risk-free interest A return achieved without risk. In practical terms, the current yield on short-term cash is used as the risk-free interest rate. Start page ^ S A B C D E F G H I J K L M N O P Q R S T U V W X Y Z ...

Risk Capital- The amount of money that an individual can afford to invest, which, if lost would not affect their lifestyle. Risk Management - To hedge one’s risk they will employ financial analysis and trading techniques.

Risk The possibility for loss of some or all of the money you invest. Also, the degree of probability for such a loss. Risk tolerance ...

Risk: the possibility of loss; the uncertainty of future returns. Sales charge: In the case of mutual funds, these are commissions charged to holder of fund units, usually based on the purchase or redemption price.

Risk/Reward Ratio The greater the investment risk--the greater the expected return. The ratio places an investor's desire for capital preservation at one end of the scale and a desire to maximize returns at the other end.

Risk: In investing, risk is a measure of the probability of financial loss. People view investment risk in a number of ways that may involve a variety of different factors.

Risk of incurring losses in relation to the value of overseas investments as a result of movements in international exchange rates. Custodian ...

See also: Trading, Trade, Price, Stock, Will