Risk appetite

From The Free Forex Encyclopedia

Jump to: navigation, search

Risk appetite is a gauge of how "risk-hungry" traders are. If risk sentiment is up and times are good, risk appetite picks up and trader are more willing to invest in higher-yielding and/or potentially more volatile assets.

In the forex market, this normally means that traders are more willing to invest in currencies that have higher interest rates (i.e. Australian dollar, British pound), equities and commodities.


Related Articles

Still About That Risk Aversion Versus Risk Appetite Theme

Risk Appetite Has Shifted Dramatically From Yesterday to Today

Is Risk Appetite Picking Up?

"Aerodynamically the bumblebee shouldn't be able to fly, but the bumblebee doesn't know that so it goes on flying anyway."
Mary Kay Ash
Clicky Web Analytics